Regular observation of the liquidity in the CIS export billet market led to the determination that an index methodology would be applicable.
The billet index, which was launched on Monday May 15, has replaced the CIS export billet $ per tonne fob Black Sea ports price assessment. The publishing of the new index follows a comprehensive one-month-long consultation period.
Metal Bulletin intends the index to be a fair and representative price based on a clear specification, and backed by a robust methodology, which has been applied successfully to many other markets.
The index is structurally designed to balance the influences of all sides of the market, preventing market distortions, and to remove incorrect or misreported data. All market data is combined into a single reference price, allowing maximum liquidity, and hence representation, in the model.
The index is based on actual transactions, as well as offers and bids that are reported to Metal Bulletin by any market participant conducting trades.
To bring this price to the market, Metal Bulletin is using the expertise of its team of price reporters as well as its separate index team, which has wide experience of creating indices for use by the metals and steel markets.
The index will be published weekly on Mondays, or on the next working day in the event that a Monday falls on a UK public holiday.
The index will be calculated on a $ per metric tonne basis, fob Black Sea.
Wide industry participation in the indices is welcome. If you have any comments or would like to contribute to the CIS export billet index, please email firstname.lastname@example.org.
Metal Bulletin has launched a weekly index for CIS-origin export steel billet on the fob Black Sea ports basis.