Platts clarifies Billet FOB Black Sea Export assessment criteria amid trade flows disruption

Platts, part of S&P Global Energy, in line with its assessment methodology, will consider Black Sea Export FOB Billet (STBLB00) based on appropriate freight netbacks from adjacent markets in the absence of bids, offers, trades or other related market data received for billet on a FOB Black Sea basis.

Based on observed historical price differentials, Platts is currently applying a $35/mt freight netback from CFR Turkey to derive an equivalent value for Black Sea Export FOB Billet in the absence of observable FOB indications. Platts seeks wider market feedback on the suitability of CFR Turkey indications as the basis for FOB Black Sea assessments and the prevailing freight netback considered.

This follows Platts observation of ongoing disruption in the trade flows and the absence of observable spot market activity in the Black Sea region after an escalation in the Russia-Ukraine conflict earlier this year.

In addition, Platts is seeking immediate feedback on the following FOB Black Sea assessments, including whether they continue to reflect relevant regional market conditions and whether there is a need for Platts to publish new assessments from alternative export locations, such as the Baltic Sea, and import markets, such as Turkey to reflect evolving trade flows.

STBLB00 Steel Billet export, FOB Black Sea export

STHRB00 HRC FOB Black Sea export

STRRB00 CRC FOB Black Sea export

SB01233 Slab FOB Black Sea export

SB01243 Wire rod mesh quality FOB Black Sea export

Platts welcomes feedback on the liquidity and relevance of these markets, including typical trade flows, volumes, specifications, delivery terms and pricing conventions.

Market participants are also invited to comment on the continuation and any appropriate modification of the FOB Black Sea assessments.

Please send any questions, comments or feedback to EMEAMetalsTeam@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.