Platts proposes to update location specification of HMS 1/2 80:20 CFR East Asia ferrous scrap assessment

Platts, part of S&P Global Commodity Insights, proposes to update the location specification of its HMS 1/2 80:20 CFR East Asia assessment from Dangjin, South Korea to Phu My, Vietnam, effective July 2, to reflect changes to trade flows and spot market liquidity.

The proposal is in response to an increase in Vietnam's ferrous scrap imports, alongside Platts observation of reduced spot trading activity taking place on a CFR South Korea basis.

South Korea's ferrous scrap imports declined by 43.1% in 2024 to 2.2 million mt, from 3.8 million mt in 2023, while Vietnam's ferrous scrap imports rose 19.7% year to date through October 2024 to 4.3 million mt (January-October 2024), according to data from Global Trade Analytics Suite by S&P Global Market Intelligence.

Platts continuously reviews its assessment methodology and seeks to reflect the most up-to-date specifications observed for its market coverage.

The assessments affected and the proposed location specifications are listed in the table below:

Under this proposal, Platts would continue to consider market information relevant to other East Asia locations. Information specific to Dangjin may be normalized to a Phu My basis.

Platts welcomes feedback on other assessment parameters including volume, timing, and payment terms.

Full details of Platts HMS 1/2 80:20 CFR East Asia specifications can be found here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/steel-ferrous-methodology.pdf(opens in a new tab)

Platts HMS 1/2 80:20 CFR East Asia scrap assessments are published on fixed pages STL/PMA 1326, 1350, and 1362 of the real-time Platts Steel Alert and Platts Metals Alert, in SBB Steel Markets Daily, Global Market Outlook, Steel Raw Materials Monthly, and in the Platts price database.

Platts invites feedback, comments and questions on this proposal by May 13 to pl_asia_steel@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.