Announcement

Q&A

Foreign Trade Enterprise: Q: Due to the cash flow stress, I have a batch of goods to sell as soon as possible. But now, the market is not particularly optimistic, and the prices decline continuously. The buying interest from clients is low, and the clients are worried that prices may decline further after signing contracts. In this case, how do we handle the problems?; A: You can negotiate with your clients and take SCI assessed price as the settlement price or reference price. It is uncertain whether the prices will continue to drop or rebound against the changing market environment. SCI price assessment can timely reflect the true status of the market.
Manufacturing Enterprise: Q: We usually buy a certain amount of feedstock every month, but we need to bargain with the suppliers every time, resulting in the low working efficiency. We intend to sign long-term contracts with some feedstock suppliers. But whose prices should be used as a reference, so as to make both parties feel fair and reasonable?; A: You can take SCI assessed price as the settlement price or reference price of the contract price and access the calculation formula. Regardless of the market fluctuations, SCI price assessment can reflect the market’s actual changes and the true transaction price or price range.
Newly-Constructed Factory: Q: Our company is about to put the units into production, but we have no idea about the price range acceptable to the market. If the products are supplied into markets, how do we determine the selling prices with distributers?; A: You can select one or several SCI assessed prices related to your products, identifying a pricing model or weight with your distributors as a reference for the selling prices. In this way, regardless of the market price fluctuations, SCI price assessment can provide important support to adjust the selling prices and control profits, and help establish long-term and stable cooperation with clients.
Bank: Q: Our bank often receives the demand for mortgage loans. Collaterals can sometimes be bulk commodity feedstock. But we are not sure whether the mortgage prices are reasonable.; A: SCI can provide the commodity price assessment related to this commodity as a price reference. These prices can be used to assist in the evaluation of corporate assets.
Government: Q: We need to understand the real market prices of commodities in order to develop reasonable and scientific regulatory policies for the healthy and orderly development of the market. At the same time, the benchmark is also needed in taxation and other aspects.; A: SCI price assessment reflects the true transaction price or price range and avoids the possibility of pricing interruption caused by the supply shortage. Governments and organizations can understand the market tendency better by using SCI price assessment, which provides a more scientific and reasonable reference for macro-policy making.

Other Relevant Questions

Q1: How will SCI ensure the independent position rather than being manipulated by market participants?

A1: As the leading commodity information provider in China, SCI enacts rigorous SCI Commercial Moral Regulation and SCI Code of Conduct for Analyst and implements methodology strictly in the price assessment. While assessing prices, SCI analysts shall not only collect prices from the sellers and buyers, but also verify the information via multi channels. Those values that do not comply with the methodology or the mainstream market tendency will be eliminated in price assessment.

Q2: Participants may seek to manipulate prices with particular intention. Will those manipulated prices be adopted in the price assessment of SCI?

A2: According to the compliance policy and methodology of the price assessment, prices that deviate from the mainstream market tendency will not be adopted in the price assessment. SCI mostly assesses the mainstream transaction prices, and the bid/offer prices are only taken as references in extreme circumstances.

Q3: How will SCI assess prices in extreme market circumstances when there is no deal concluded?

A3: If extreme market circumstances occur in the assessment period when no available concluded dealing price is collected under the terms of the methodology, SCI will adopt the intended price range between both sellers and buyers or the offer and bid in the negotiation and assess the most possible transaction price range.

Q4: Will transaction prices provided by me as a market participant be used by SCI?

A4: SCI has settled strict standard of each assessment in the price assessment methodology, including region, time, quantity of goods, payment methods, arrival time and so on. If the transaction price provided complies with the methodology, SCI will adopt the price for the assessment. Otherwise, the price will not be adopted.

Q5: Are there any differences between SCI assessed prices and prices provided by other China information providers?

A5: Yes, there are differences. SCI mainly collects transaction prices and accesses the assessed price or price range that reflects the real market situation by complying with the methodology strictly. Based on years of study of pricing mechanism and market drivers, SCI integrates the research into the commodity price assessment methodology to access objective and scientific results. Currently, the prices of most information providers haven’t been supported by methodology.

Q6: Can the price assessment methodology be explained if we use SCI assessed prices to sign long-term contracts with customers?

A6: The methodology can be downloaded freely from SCI website or you can contact your account manager. For details on the price assessment process or other related questions, you can call +86-533-5075233 at any time.

Q7: What to do if there is no price assessment for the area that I pay attention to?

A7: Not all the commodities or areas are suitable for the price assessment. Only the price assessment in the market which is representative and active in trading is meaningful. You can use the assessment in other areas for your reference or benchmark price and apply it with a premium of discount according to actual situations.

Q8: Will the SCI price assessment methodology be updated with the market changes? How can we get the update?

A8: With many years of deep study on the pricing mechanism and market drivers of each commodity, SCI integrates the research into the price assessment methodology to seek objective and scientific assessment results. The price driving forces of each commodity will change constantly with time and region. Accordingly, the price assessment methodology of each commodity will be updated constantly. The external consultation and update will be released on SCI website.