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Price notice: Imported longs assessments

Feb 04, 2020 | 05:33 PM | New York | Patrick Fitzgerald

Tags  Steel, long products, rebar, wire rod, beams, merchant bar, price notice, Patrick Fitzgerald


Fastmarkets proposes to amend the specifications of its imported rebar, wire rod, merchant bar and beams assessments from a “ddp Port of Houston” price to a “ddp loaded truck for immediate delivery Port of Houston” price, and to amend the quantity for each of those assessments.

Fastmarkets proposes to make this change to bridge the definitional gap between the “delivered duty paid” – or ddp – and “loaded truck” pricing terms.

After consulting with market participants, Fastmarkets understands that ddp pricing equates to the seller of steel being responsible for delivering the material to the named place in the country of the buyer, paying all costs in bringing the goods to the destination - including applicable duties and taxes.

But ddp pricing does not include discharging the vessel (stevedoring), handling and storage, and reloading, in addition to the cost of letters of credit (LCs), credit insurance and the individual traders’ profit margin, all of which need to be included within any assessment in order to arrive at a loaded-truck price.

Fastmarkets understands buyers of imported steel prefer to discuss the pricing of foreign material in loaded-truck terms. The proposed change reflects the realities of the physical marketplace, and would allow ease of use among buyers of imported long products, because a significant amount of imported long products are priced on a loaded-truck basis. The assessment would account for all import duties, including the Section 232 tariffs as well as anti-dumping and countervailing margins.

In addition, Fastmarkets aims to assess the current cost of foreign material available at ports of entry on the assessment date, and therefore proposes to specify “immediate delivery” for its import assessments to indicate that the assessments are not for future prices.

Lastly, Fastmarkets proposes to amend the quantity for each of its imported long product assessments from 500 tons to 25 tons, 50 tons and 100 tons respectively, to more appropriately reflect transactions in these markets.

Fastmarkets’ current specifications for the assessments are as follows: 

Reinforcing bar, import:
Quality: Commercial-quality reinforcing bars within standard tolerances. ASTM A615 and equivalent.
Size: #5
Location: DDP Port of Houston
Unit: USD per short ton
Quantity: 500 tons
Publication: Twice a month, first and third Wednesday

Wire rod, import
Quality: Commercial-quality steel wire rod within standard tolerances. ASTM A510 and equivalent.
Gauge: 5.0mm-19 mm thick. Cross section 0.22-0.56 inches. Other dimensions normalized.
Location: DDP Port of Houston
Unit: USD per short ton
Quantity: 500 tons
Publication: Once a month, third Tuesday

Merchant bar, import
Quality: Commercial-quality steel angle within standard tolerances. ASTM A36 and equivalent.
Gauge: ¼ inch thick x 2 inches wide x 2 inches deep angle.
Location: DDP Port of Houston
Unit: USD per short ton
Quantity: 500 tons
Publication: Monthly, last Friday

Beams, import
Quality: Commercial-quality steel beams within standard tolerances. ASTM A36 and A572 or equivalent.
Gauge: Web size 6-24 inches by 5 ¼ foot.
Location: DDP Port of Houston
Unit: USD per short ton
Quantity: 500 tons
Publication: Once a month, last Thursday

The proposed amended price specifications are as follows, with potential changes highlighted in bold:

Imported rebar:
Quality: Commercial-quality reinforcing bars within standard tolerances. ASTM A615 and equivalent.
Size: #5
Location: DDP loaded truck Port of Houston for immediate delivery
Unit: USD per short ton
Quantity: 25 tons
Publication: Twice a month, first and third Wednesday

Imported wire rod:
Quality: Commercial-quality steel wire rod within standard tolerances. ASTM A510 and equivalent.
Gauge: 5.0mm-19 mm thick. Cross section 0.22-0.56 inches. Other dimensions normalized.
Location: DDP loaded truck Port of Houston for immediate delivery
Unit: USD per short ton
Quantity: 50 tons
Publication: Once a month, third Tuesday

Imported merchant bar:
Quality: Commercial-quality steel angle within standard tolerances. ASTM A36 and equivalent.
Gauge: ¼ inch thick x 2 inches wide x 2 inches deep angle.
Location: DDP loaded truck Port of Houston for immediate delivery
Unit: USD per short ton
Quantity: 100 tons
Publication: Monthly, last Friday

Imported beams:
Quality: Commercial-quality steel beams within standard tolerances. ASTM A36 and A572 or equivalent.
Gauge: Web size 6-24 inches by 5 ¼ foot.
Location: DDP loaded truck Port of Houston for immediate delivery
Unit: USD per short ton
Quantity: 100 tons
Publication: Once a month, last Thursday

The one-month consultation period for this proposal begins on Tuesday January 14 and will end on will end on February 14; an update to this notice will be published on that day.

Fastmarkets has no financial interest in the level or direction of these assessments.

To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to this price, please contact Patrick Fitzgerald by email at pricing@fastmarkets.com. Please add the subject heading: FAO: Patrick Fitzgerald, re: imported long products.

To see all of Fastmarkets' pricing methodology and specification documents, click here.


 

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