PRICING NOTICE: Proposal to amend frequency of China import steel billet price

Fastmarkets proposes to increase the frequency of its China import steel billet price from once to twice each week because of continued price volatility in the market.

Fastmarkets’ price assessment for steel billet, import, cfr China has been subject to constant fluctuations and high liquidity since the price was launched in February 2021.

Key factors affecting the Chinese import billet price have been market expectations of greater demand due to government-led steel output cuts in China and swings in both the Chinese ferrous futures prices and in global scrap prices.

Such fluctuations, together with increased interest from key market participants in the price, means that the price now warrants a twice-weekly publishing schedule.

The amended price methodology is proposed as follows:

MB-STE-0890: Steel billet, import, cfr China, $/tonne
Quality: 120x120mm to 150x150mm, length 12m, 3sp grade
Quantity: 5,000-50,000 tonnes
Origin: All origins excluding Iran
Location: cfr eastern China ports (normalized for other mainland Chinese sea ports)
Timing: 4-8 weeks
Unit: $ per tonne
Payment terms: Letter of credit on sight
Publication: Weekly, Tuesday and Friday, 5pm-6pm Shanghai time

Increasing the frequency of the price assessment creates better import price visibility in the key Chinese import market and gives decision makers greater information on price movements.

The consultation period for this proposed amendment starts from Monday August 16 and will end on Thursday September 16. The amendment will then take effect, subject to market feedback, from Tuesday September 21.

To provide feedback on this price assessment, or if you would like to provide price information by becoming a data submitter to this price, please contact Lee Allen by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Lee Allen re: China steel billet price.’

To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/about-us/methodology.

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