Fastmarkets invited feedback specifically on how to treat quarterly contracts in the monthly index calculation. Feedback received regarding this matter was divided, as some thought it is more important to take the quarterly deals into account separately, whereas other respondents did not see major differences and suspected this would make the price collection more difficult.
As a result, Fastmarkets has decided to make the following changes to its PIX Sawn Softwood Timber FAS Finland methodology:
- Add a note on the methodology encouraging the contributing companies to report their quarterly deals separately if seen necessary based on their trading patterns.
- Add to the methodology that Fastmarkets has a possibility to include these quarterly deals in the calculation by dividing the quarterly volumes over three months starting from the reporting month, keeping the reported quarterly price unchanged over the period.
This consultation sought to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency.
You can find the current methodology for PIX Sawn Softwood Timber FAS Finland here: https://www.fastmarkets.com/methodology/forest-products/pix-sawn-timber-finland-methodology-and-specifications
To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.
