Capesize

5925

Feb-17
0.00 0.00%

Panamax

7475

Feb-17
75.00 1.01%

Iron Ore

81.7

Feb-17
0.95 1.18%

Sing 380

312.95

Mar-17
#N/A #N/A

Coking Coal

185

Feb-17
0.00 0.00%

Nola Urea

250

Feb-17
0.00 0.00%

Steel and Scrap Contract Specifications


FIS has worked with first-class index providers to help make steel swaps a reality. Below are listed the contracts currently covered by FIS. Please contact us for further information.

The Steel Index

From February 2014 steel producers, consumers and traders in the steel market have a new risk management tool. The ASEAN HRC index enables stakeholders from Asia to Europe and the US to hedge physical positions and trade swaps on a regionally-priced instrument that sits naturally alongside hugely popular iron ore swaps and futures. As the leading broker in freight and commodity swaps, FIS will offer execution on the contract, allowing clients to benefit from a tool that meets their need for Asia-focussed price risk management.

ASEAN HRC Imports: CFR

Grade: Prime mild carbon steel to SAE 1006, SPHC or SPHT-1 (or equivalent)
Gauge: up to 3mm; Width: 900-2000mm
Coil weight: 10-30 metric tonnes
Order size: 1000 metric tonnes minimum
Pricing point: CFR ASEAN Port
Currency: US$/t
Frequency: Daily
Publication Dates: Following Singapore calendar
Lot Size: 20 metric tonnes

The TSI European Hot Rolled Coil (HRC) derivatives enable participants to trade this market for the first time. TSI will initially offer the Northern and Southern Europe contracts as a weekly assessment. TSI works with a broad group of companies that have agreed to submit steel price data based on actual transactions. The ‘data provider group’ includes steel mills, traders, stockholders, fabricators and end-users in all relevant regions. TSI’s steel prices are already an essential tool for steel market participants as an accurate, robust reference for physical transactions.

Hot Rolled Coil - Northern Europe

Grade: Prime mild carbon steel EN10111 DD11 (or equivalent)
Gauge: 2mm upwards. Width: 1250-1600mm
Coil Weight: 10-25 metric tonnes
Order size: 500 metric tonnes minimum
Including surcharges (e.g. scrap surcharge)
Excluding extras (e.g. non-standard dimensions or order sizes)
Price point: Net Effective Base Price, Ex-Mill, North European Basing Point
Price units: € per metric tonne
Lot size: 20 tonnes

Hot Rolled Coil – Southern Europe

Grade: Prime mild carbon steel EN10111 DD11 (or equivalent)
Gauge: 2.0-4.0mm. Width: 1250-1600mm
Coil Weight: 14-25 metric tonnes
Order size: 500 metric tonnes minimum
Including surcharges (e.g. scrap surcharge)
Excluding extras (e.g. non-standard dimensions or order sizes)
Price point: Net Effective Base Price, Ex-Mill
Price units: € per metric tonne
Lot size: 20 tonnes

Turkish Scrap Imports

Material: Heavy Melt Scrap (HMS) 1 & 2, blended in an 80:20 Mix. ISRI codes 200-206 inclusive. HMS1 wrought iron and steel scrap ¼” and over in thickness. HMS2 wrought iron and steel scrap, black and galvanised 1/8″ and over in thickness. Grades 205 and 206 to exclude cast iron and thin gauge materials.Pricing Point: CFR Turkish port, Turkey
Minimum lot size: 5,000 metric tonnes
Timing: Delivery within 30 working days
Payment: Cash/LOC
Price units: US$ per metric tonne
Clearing: LCH.Clearnet
The TSI N/S Europe assessments are published daily. TSI works with a broad group of companies that have agreed to submit steel price data based on actual transactions. The ‘data provider group’ includes mills, traders, stockholders, fabricators and end-users in all relevant regions and TSI’s steel prices have become an essential tool for steel market participants as an accurate, robust reference for physical transactions.

Full details of the contract specifications, price history and index methodology can be found on www.thesteelindex.com.

Cleartrade China Steel Indices

The China HRC and Rebar contracts use the Cleartrade China Steel Index (CCSI), for which data are submitted by steel industry participants in 25 of the largest Chinese cities involved in steel products trading and collated by Umetal. The participants span the entire Chinese domestic steel industry and include producers, traders, end users and stockists.

An RMB assessment is published at 17:00 standard China time, at which point it is converted into a USD price, providing a fresh assessment at 12:00 London time each day.

China Steel Index Contract

The Umetal Cleartrade Steel Indices are based upon data relating to spot market transactions. These data are submitted by steel industry participants (‘data providers’) who have built up long working relationships with Umetal. The data providers span the entire China domestic steel industry. Umetal has data providers in each city in China and they include producers, traders, end users and stockists. Each data provider is required to sign a data provider agreement with Umetal in which they agree to provide high quality data relating to spot transactions to Umetal by the specified dateline and to not disclose to anyone outside of their company that they are one of the data providers to the FIS Umetal Steel Indices.

The collection of raw data is looked after by Custeel, a subsidiary of Umetal. Custeel is an integrated website headed by China’s Iron & Steel Association (CISA) providing information about the steel industry in China.

Domestic Hot Rolled Coil (HRC) – China

Quality: In the category of Q235
Quantity: Standard spot-market order size of 100 mt and above
Dimensions: 4.75 mm (thickness) x 1500mm (width) x C
Location: Prices sourced from 25 major cities across China
Others: Unit for assessment will be USD per metric ton. Exclude surcharges and extras

Domestic Hot-Rolled Ribbed Bar (Rebar) – China

Quality: In the category of HRB335
Quantity: Standard spot-market order size of 100 metric tonnes and above
Dimensions: with a diameter of between 16 – 25 mm
Location: Prices sourced from 25 major cities across China
Others: Unit for assessment will be USD per metric ton. Exclude surcharges and extras

CRU US Midwest Domestic Hot-Rolled Coil Steel Index.

CRU Steel Prices for semi-finished and finished carbon steel products are among the most widely used in the world steel industry.

CRU prices are used in the physical contracts between buyers and sellers of steel – latest estimates suggest that over 50% of direct shipments from US steel sheet mills are now priced against CRU Steel Prices.

They are also used in the models that buyers employ to manage steel price risk. CRU Steel Prices act as the trigger points for surcharges and are entered into thousands of so-called ‘variable cost contracts’ and are used in the settlement of OTC derivative products.

Industry participants choose to contribute data to CRU Steel Prices for a number of reasons. By participating, data providers have access to CRU’s team of steel industry analysts, to exchange views on world steel markets.

Given the huge number and value of physical and financial contracts settled against CRU Steel Prices, it is essential for industry participants to contribute their data to our price assessments. They do so in the knowledge that all interaction between CRU and themselves is on an entirely confidential basis.

CRU’s data providers represent the whole supply chain, including producers, stockists, service centres, traders and end-users. CRU works closely with its data providers to ensure that the data submitted fits absolutely with our strict product definitions. All data providers must satisfy CRU criteria for inclusion so as to ensure the quality of its assessments.

US Midwest Domestic HRC

Trading unit: (lot size) 20 short tons
Price quotation: US dollars and cents per short ton
Trading months: 24 consecutive months
Settlement: Financial, against CRU’s US Midwest assessments
Trading symbol: HR
For further details visit www.cmegroup.com/metals

Platts Billet FOB Black Sea

Swaps in Black Sea billet are the newest addition to the growing roster of steel derivatives from FIS, based on Black Sea export prices for material largely from Ukraine and Russia.

With the size of the global physical market estimated at 500m metric tons, the comparable size of the Black Sea physical market is 20m metric tons annually. The forward curve provides settlement to Cal14.

Platts Billet FOB Black Sea Contracts

Platts Billet FOB Black SeaClearing: CME Clearport
Lot Size: 100 metric tonnes
Price Quotation: USD
Trading Months: 24 consecutive months
Settlement: Cash/financial
Index: Platts
Grade: GOST 380-94, 5sp/ps
Gauge/width: 125 x 125 mm square, lengths 11,700 mm
Timing: Lead times 2-6 weeks
Payment: At sight

American Metal Market

The AMM US Midwest Ferrous Scrap Index methodology is a tonnage-weighted calculation of transactions that have been normalized to its base specification using value-in-use (VIU) curves as defined by the market.

AMM has been reporting on the US scrap market for over 100 years and has a unique level of experience and knowledge in providing benchmark prices to the industry.

The Index is based on actual transactions, which are reported to AMM by any market participant who is conducting trades on a delivered Midwest mill basis, and is not restricted to a panel or selected group.

American Metal Market Contracts

US Midwest No. 1 Busheling Ferrous Scrap
Clearing: CME
Trade Size: Minimum 1,000 gross tons
Price Quotation: USD
Trading Months: Up to 24 months
Price Point: Delivered Midwest mill
Delivery: Any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and NE Ohio
Specifications: ISRI Grade 207, No. 1 busheling
Material Origin: All origins
Delivery Window: Within 30 days
Delivery Method: Any permitted according to ISRI specifications 2011
Payment Terms: Net 30 days post delivery. Other terms normalized

Publication Date: 5 p.m. EST, 10th day of each month (or following working day)