This is in response to feedback that a terminal market import price into the Philippines would be a key indicator for the Asian billet sector.

Liquidity has been observed to be sufficient for the weekly assessment to be made a daily one. This alteration is designed to capture volatility within the market throughout the daily data collection window.

The proposed specifications are as follows:

Assessment:  Southeast Asia import billet $ per tonne cfr, assessed range
Dimensions: 120x120mm to 150x150mm, length 12m 
Quantity: 5,000-20,000 tonnes
Location: cfr Manila (other Southeast Asian ports to be normalized)
Timing: 6-8 weeks
Unit: US$ per tonne
Payment terms: Letter of credit
Publication: Daily, 5-6pm Singapore time
 
The price assessment is based on billet offered and traded in Southeast Asia, mainly into the Philippines because the nation is the most liquid and active market. Billet from China, Vietnam, Thailand, South Korea, Russia, Taiwan, India and the Middle East will be considered in the assessment. 

Prices for both Q235 and Q275 grades, in sizes ranging from 120x120mm to 150x150mm, produced by mills using blast furnaces or electric-arc furnaces (EAF) are accepted. Billet produced using induction furnaces will not be considered in the assessment due to the difference in its quality in comparison with that produced using blast furnaces and EAFs.

Metal Bulletin is now accepting feedback on the proposed change.

The consultation period for this proposed launch ends on July 31; the changes will take place from August 1, subject to market feedback.

Metal Bulletin has no financial interest in the level or direction of the assessment.

To provide feedback on this price or if you would like to provide pricing information by becoming a data contributor to this price, please contact Fiona Lam by email at: fiona.lam@metalbulletinasia.com. Please add the subject heading FAO: Fiona Lam, re: SE Asia import billet assessment.

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