Following a consultation period, Metal Bulletin is making the change in response to the sufficient market liquidity observed to support a daily assessment.

The higher frequency is intended to reflect volatility within the market throughout the daily data collection window.

Metal Bulletin also received feedback from the market that a terminal market import price into the Philippines would be a key indicator for the Asian billet sector, due to the Philippines being the most active importer for the semi-finished product in the Southeast Asian region.

The amended price assessment will be based on billet offered and traded in Southeast Asia, with a focus on the Philippines. Billet from exporting markets including China, Vietnam, Thailand, South Korea, Russia, Taiwan, India and the Middle East will be considered.

The revised specifications for this assessment 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 assessment will be based on actual transactions, as well as offers, bids and estimations of tradable prices that are reported to Metal Bulletin by participants active in the market.

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 quality in comparison with material produced using blast furnaces and EAFs.

All historical data relating to the assessment prior to the changes on Wednesday August 1 will remain available in the pricing section of the Metal Bulletin website.

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

To provide feedback on these changes, or if you would like to provide pricing information by becoming a data contributor to the Southeast Asian billet price, please contact Fiona Lam by email at: pricing@metalbulletin.com. Please add the subject heading ‘FAO: Fiona Lam, re: Southeast Asia billet import price.’

To see all of Metal Bulletin’s pricing methodology and specification documents go to www.metalbulletin.com/prices/pricing-methodology.