The frequency of the indices, which were previously twice-weekly, will now be priced one a week every Friday starting from May 13, notwithstanding changes to pricing schedules due to holidays.
Modifying the frequency of the price indices is based on feedback from market participants during the consultation period between March 31 and May 2. Imported steel scrap has been subject to persistently low market activity since last June due to the wide gap between bids and offers for the material.
Following the amendment, the full specification for the east China price index is as follows:
MB-STE-0889: Steel scrap, index, heavy recycled steel materials, cfr east China, $ per tonneQuality: Cut structural and plate scrap, compliant with China scrap standard HRS101, minimum thickness of 6mm, minimum diameter of 10mm, length less than 1,500mm, width less than 600mm, maximum unit weight 1,500kg
Quantity: Minimum 2,000 tonnes (bulk)
Location: cfr eastern China ports
Timing: 3-10 weeks
Unit: US$ per tonne
Payment terms: Letter of credit on sight
Publication: Weekly, Friday, 5-6pm Shanghai time.
The full specification for the north China price index is as follows:
MB-STE-0895: Steel scrap, index, heavy recycled steel materials, cfr north China, $ per tonneQuality: Cut structural and plate scrap, compliant with China scrap standard HRS101, minimum thickness of 6mm, minimum diameter of 10mm, length less than 1,500mm, width less than 600mm, maximum unit weight 1,500kg
Quantity: Minimum 2,000 tonnes (bulk)
Location: cfr northern China ports
Timing: 3-10 weeks
Unit: US$ per tonne
Payment terms: Letter of credit on sight
Publication: Weekly, Friday, 5-6pm Shanghai time.
To provide feedback on these price indices, or if you would like to provide price information by becoming a data submitter to the prices, please contact Tianran Zhao by email at: pricing@fastmarkets.com . Please add the subject heading “FAO: Tianran Zhao re: China scrap import price.”
To see all Fastmarkets’ pricing methodology and specification documents go to https://www.fastmarkets.com/about-us/methodology.