Metals & Mining Theme, Ferrous

November 04, 2024

Platts proposes to reshape China steel billet assessment coverage for seaborne market

Platts, part of S&P Global Commodity Insights, proposes to publish a daily steel billet FOB China spot price assessment, and to discontinue publishing its assessment for steel billet CFR China (CBLCA00), effective Feb. 3, 2025, in reflection of changes to trade flows and spot market liquidity.

The proposal is in response to a gradual rebound in Chinese steel 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, rising 219% from 1.03 million mt in 2022 to 3.28 million mt 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 (CISA). Most of the semi-finished steel traded is understood to comprise square billet.

The proposed assessment would have the following specifications:

Description Quality Quantity Dimensions Location Timing Payment Terms UOM
Billet FOB China 3SP 5,000 mt 150x150mm sectional dimensions, length 12m FOB Jingtang, China Loading 4-8 weeks forward At sight $/mt

The assessment would reflect a 5:30 pm Singapore timestamp and follow the Singapore holiday calendar.

The proposed assessment would consider 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 proposed discontinuation would affect the following:

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

Full details of Platts Billet CFR China specifications can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/steel-ferrous-methodology.pdf

Platts China billet assessments are published on fixed page STL0795 of the real-time Platts Steel Alert, in Steel Price Report and in the Platts price database. The proposed FOB China assessment would additionally be published on STL1215.

Platts invites feedback, comments and questions on this proposal by Nov. 15 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 to the public upon request.