Metals & Mining Theme, Ferrous

February 03, 2025

Platts reshapes China steel billet assessment coverage for seaborne market Feb 3

HIGHLIGHTS

Platts launches daily FOB China assessment

CFR China assessment discontinued

Refocus responds to changing trade flows

Platts, part of S&P Global Commodity Insights, has launched a daily steel billet FOB China spot price assessment and discontinued its assessment for steel billet CFR China (CBLCA00), effective Feb. 3, in reflection of changes in trade flows and spot market liquidity.

The decision to reshape seaborne coverage followed a period of market feedback and responds to a gradual rebound in Chinese billet exports, alongside Platts' observation of reduced spot trading of billet on an import basis.

China's semi-finished steel exports rose threefold between 2022 and 2023, up 219% from 1.03 million in 2022 to 3.28 million in 2023, while its imports fell 49% over the same period, from 6.39 million mt in 2022 to 3.27 million mt in 2023, according to the China Iron and Steel Association. Most of the semi-finished steel traded is understood to comprise square billet.

China's semi-finished steel exports totaled 5.57 million mt over January-November 2024, up 85% year over year, CISA data showed.

The specifications of the new assessment are as follows:

Description Daily symbol Monthly average Quality Quantity Dimension Location Timing Payment terms UOM
Billet FOB China  CBLCB00 CBLCB03 3SP 5,000 mt 150x150 mm sectional dimensions; length of 12 m FOB Jingtang, China  Loading 4-8 weeks forward At sight $/mt

The assessment reflects a 5:30 pm Singapore time stamp and follows the Singapore holiday calendar.

The assessment considers market information reported to Platts and published throughout the day, including firm bids and offers, transactions and indications, as well as any other data deemed relevant to the assessment process.

The discontinuation affects the following:

Symbol Assessment description
CBLCA00 Billet CFR China
CBLCA03  Billet CFR China MAvg

Platts first proposed the reshaping of assessment coverage in a subscriber note published Nov. 4. Following market feedback, Platts communicated its decision to launch the FOB China assessment and discontinue the CFR China assessment in a subscriber note published Nov. 20.

Platts FOB China billet assessment is published on fixed pages STL0795 and STL1215 of the real-time Platts Steel Alert, in the Steel Price Report and in the Platts price database. The first monthly average calculation updates on March 1, reflecting the average of daily assessments published throughout February.

Please send all comments, feedback and questions to pl_asia_steel@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make those not marked as confidential available to the public upon request.