SIEMENS
14/3
Siemens D 31 N · March 2016
Appendix
Metal surcharges
14
■
Explanation of the raw material/metal surcharges for dysprosium and neodym (rare earths)
1)
2)
Surcharge calculation
To compensate for variations in the price of the raw materials
silver
1)
, copper
1)
, aluminum
1)
, lead
1)
, gold
1)
, dysprosium and/or
neodym, surcharges are calculated on a daily basis using the
so-called metal factor for products containing these raw
materials. The surcharge for dysprosium and neodym is calcu-
lated as a supplement to the price of a product if the basic
official price of the raw material in question is exceeded.
The surcharge is calculated in accordance with the following
criteria:
•
Basic official price of the raw material
2)
Three-month basic average price (see below) in the period
before the quarter in which the order was received or the re-
lease order took place (= average official price) for
- dysprosium (Dy metal, 99 % min. FOB China; USD/kg)
- neodym (Nd metal, 99 % min. FOB China; USD/kg)
•
Metal factor of the products
Certain products are displayed with a metal factor. The metal
factor indicates (for those raw materials concerned) the basic
official price as of which the surcharges for dysprosium and
neodym are calculated using the weight method. An exact ex-
planation of the metal factor is given below.
Three-month average price
The prices of rare earths vary according to the foreign currency,
and there is no freely accessible stock exchange listing. This
makes it more difficult for all parties involved to monitor changes
in price. In order to avoid continuous adjustment of the sur-
charges, but to still ensure fair, transparent pricing, an average
price is calculated over a three-month period using the average
monthly foreign exchange rate from USD to EUR (source: Euro-
pean Central Bank). Since not all facts are immediately available
at the start of each month, a one-month buffer is allowed before
the new average price applies.
Examples of calculation of the average official price:
Structure of the metal factor
The metal factor consists of several digits; the first digit is not
relevant to the calculation of dysprosium and neodym.
The remaining digits indicate the method of calculation used for
the respective raw material. If no surcharge is added for a raw
material, a "-" is used.
Weight method
The weight method uses the basic official price, the average
price and the raw material weight. In order to calculate the sur-
charge, the basic official price must be subtracted from the av-
erage price. The difference is then multiplied by the raw material
weight.
The basic official price can be found in the table below using the
number (1 to 9) of the respective digit of the metal factor. Your
Sales contact can inform you of the raw material weight.
Metal factor examples
1)
For a different method of calculation, refer to the separate explanation for these raw materials on the previous page.
2)
Source: Asian Metal Ltd (
www.asianmetal.com
)
Period for calculation of
the average price:
Period during which the order/release order is
effected and the average price applies:
Sep 2012 - Nov 2012
Q1 in 2013 (Jan - Mar)
Dec 2012 - Feb 2013
Q2 in 2013 (Apr - Jun)
Mar 2013 - May 2013
Q3 in 2013 (Jul - Sep)
Jun 2013 - Aug 2013
Q4 in 2013 (Oct - Dec)
1st digit
List or customer net price using the percentage method
2nd digit
for silver (AG)
1)
3rd digit
for copper (CU)
1)
4th digit
for aluminum (AL)
1)
5th digit
for lead (PB)
1)
6th digit
for gold (AU)
1)
7th digit
for dysprosium (Dy)
8th digit
for neodym (Nd)
– – – – – – 7 1
No basis necessary
No surcharge for silver
No surcharge for copper
No surcharge for aluminum
No surcharge for lead
No surcharge for gold
Dysprosium acc. to weight, basic official price
300
±
Neodym acc. to weight, basic official price 50
±
© Siemens AG 2016