In order to better serve the enterprises related to the rare earth industry chain, provide them with prices that truly reflect the spot market, and constantly improve and deepen the research of the rare earth industry chain, SMM will formally release spot quotations for lutetium oxide, ytterbium oxide, scandium oxide, scandium metal, high purity gadolinium oxide and gadolinium iron from April 15, 2021.
I. General principles of SMM Price Methodology
Shanghai Nonferrous Network (hereinafter referred to as SMM) is a completely independent third-party service organization, which does not participate in any substantive transaction, but maintains close communication with the buyer or seller of the transaction as a market observer or organizer, and provides relevant services for the market. By communicating with industry insiders, SMM continuously develops, reviews and revises its methodology to adopt the most common product specifications, terms of trade and terms of trade in the industry. And pay equal attention to the normal transactions that meet the specifications and standards. SMM reserves the right to exclude any price data information deemed to be unreliable or unrepresentative from its price assessment.
SMM publishes daily spot metal prices (or indices, etc., including the Chinese market or markets outside China), often referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM prices (all will be published on SMM's official website www.smm.cn for inquiry). The methodology stipulates the methods and procedures for the formation and release of SMM prices, and forms and publishes SMM prices in strict accordance with the provisions of the methodology.
If you have any questions or suggestions about SMM price and its methodology, please contact SMM customer service personnel (please check the contact information on SMM's official website www.smm.cn). This document sets out the spot price standards for lutetium oxide, ytterbium oxide, scandium oxide, scandium metal, high purity gadolinium oxide and gadolinium iron. The purpose of SMM in establishing this standard is to establish a transparent and verifiable SMM pricing mechanism.
II. Generation of quotation for new oxides in SMM
2.1 significance of SMM quoting
In order to serve the enterprises related to the rare earth industry chain, provide them with prices that truly reflect the spot market, and constantly improve and deepen the research on the rare earth industry chain, spot quotations for lutetium oxide, ytterbium oxide, scandium oxide, scandium metal, high purity gadolinium oxide and gadolinium iron will be officially released on April 15, 2021.
2.2 definition of price
The above quotation is an evaluative price generated and issued by SMM in accordance with this methodology and can be adopted by both parties as a reference basis for spot trade settlement. The price reflects that in each complete quotation cycle, the most likely transaction before the release time of the price, including taxes, will be sent to the price range, when SMM price members can check the historical prices on Synchronize.
2.3 method of generating price
SMM obtains spot quotations of lutetium oxide, ytterbium oxide, scandium oxide, scandium metal, high purity gadolinium oxide and gadolinium iron by standard adoption. Every day, the buyer is appointed to inquire the bid unit, and the inquiry information is inputted into the internal system of SMM. On the basis of the spot transaction price collected from the main body of the market, the market transaction price that can be confirmed by both buyers and sellers must meet the requirements of fairness, negotiability, replicability and so on. The standard collection price includes the actual transaction price of the spot that has been concluded by the local standard acquisition enterprise.
2.4 the method of adopting the standard
According to the bid acquisition confirmation agreement, SMM will regularly collect price information from contact persons for lutetium oxide, ytterbium oxide, scandium oxide, scandium metal, high purity gadolinium oxide and gadolinium iron by telephone, Wechat, e-mail and other means. the price information includes the price that has been closed and the most likely pending transaction price expected by the enterprise, etc. All instant messaging content, email communication content and any face-to-face communication records will be archived. Details of telephone communication will be recorded and entered into the database. SMM analysts are required to comply with the "compliance system" when reporting to their supervisors any forced or threatened communication from market participants, or any induced offer that attempts to influence the assessment. After the price is released, SMM will not revise or adjust it on the same day.
2.5 Product standards
Ytterbium oxide content ≥ 99.99%
Lutetium oxide content ≥ 99.99%
Scandium oxide content ≥ 99.99%
Scandium metal content ≥ 99.99%
The content of high purity gadolinium oxide is 99.99% UV 99.999%.
Gadolinium content in gadolinium iron ≥ 71%
2.6 unit of account
Ytterbium oxide: yuan / ton
Lutetium oxide: yuan / ton
Scandium oxide: yuan / kg
Scandium metal: yuan / kg
High purity gadolinium oxide: yuan / ton
Gadolinium iron: yuan / ton
2.7 forms of expression
In the form of high and low price range, including tax price (including 13% VAT)
2.8 release time
11:30-12:00 per working day (except Chinese statutory holidays and weekends)
2.9 quotation process
SMM every working day 9:30-11 30, carry out lutetium oxide, ytterbium oxide, scandium oxide, scandium metal scandium, high purity gadolinium oxide, gadolinium iron quotation work, the specific process is as follows:
2.10 Methodology change
All markets are changing, and SMM is responsible for ensuring that the methodology for market reporting changes with market Synchronize. As a result, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. SMM will follow the formal external consultation process for all substantive and non-urgent potential changes. Major changes are then announced with a notice period of at least 10 days and industry people are invited to comment unless special circumstances, especially force majeure (natural disasters, wars, exchange bankruptcies, etc.) shorten the notice period. SMM promises to scrutinize all comments about proposed methodological changes, but in some cases it may have to change the methodology against the wishes of some market participants. In addition, SMM has a formal methodological consultation process. SMM promises to hold formal consultations on methodology every three years. The date of the last consultation and the deadline of the SMM's commitment to hold the next consultation are at the top of the methodology document.
Welcome more related enterprises in the industrial chain to participate in and support SMM to better serve rare earth related enterprises.
Small expensive Industry Research team of Shanghai Nonferrous Network Information Technology Co., Ltd.
April 8, 2021