TSI launches new HRC index for ASEAN imports
The Steel Index (TSI) is pleased to announce the launch of a new hot rolled coil (HRC) index for ASEAN imports. This responds to increasing customer requests for TSI to extend its steel price coverage in Asia, following the widespread adoption of its iron ore reference prices in index-linked pricing arrangements and price risk management tools world-wide.
‘This launch is another great milestone in fulfilling TSI’s mission to provide the steel supply chain with a full suite of robust price indices,’ notes Terry Chuay, TSI’s Manager for the region. ‘Given the volatility of steel prices in today’s market, this ASEAN steel index gives producers, traders and end-users the information they need to buy and sell coil in this region with confidence.’
He adds, ‘TSI’s iron ore index has been used as the basis for over 95% of all iron ore derivatives cleared world-wide since their launch in 2009 and there is an increasing appetite in the market for similar steel price risk management tools. I would not be surprised to see financial markets soon offering steel swaps based on this ASEAN index.’
TSI’s HRC reference price for ASEAN imports is based on transaction data submitted to TSI by buyers and sellers active in the region, applying the same rigorous methodology used for compiling TSI’s other 22 steel reference prices around the world. It is reported in US$ per tonne, CFR Singapore port. The price published yesterday was $625/tonne, continuing the downward trend seen over recent weeks.
Initially the ASEAN HRC index is being published on a weekly basis, each Monday, with the reference price representing the average spot transaction price for the preceding week. The publication frequency will be increased to daily when the market dynamics and participants support this.
Subscribers to TSI’s Global and Steel services receive the new ASEAN index in their weekly steel price reports, via email, and can access the full price history at any time on TSI’s online price analyser. Any clients interested in a subscription can take a free trial on TSI’s website.
TSI’s equivalent HRC indices for Northern and Southern Europe were adopted as the basis for the world’s first cleared European flat steel swap contracts. These were launched on LCH.Clearnet last year and have seen trading interest and activity levels increase strongly during 2011.
‘This launch is another great milestone in fulfilling TSI’s mission to provide the steel supply chain with a full suite of robust price indices,’ notes Terry Chuay, TSI’s Manager for the region. ‘Given the volatility of steel prices in today’s market, this ASEAN steel index gives producers, traders and end-users the information they need to buy and sell coil in this region with confidence.’
He adds, ‘TSI’s iron ore index has been used as the basis for over 95% of all iron ore derivatives cleared world-wide since their launch in 2009 and there is an increasing appetite in the market for similar steel price risk management tools. I would not be surprised to see financial markets soon offering steel swaps based on this ASEAN index.’
TSI’s HRC reference price for ASEAN imports is based on transaction data submitted to TSI by buyers and sellers active in the region, applying the same rigorous methodology used for compiling TSI’s other 22 steel reference prices around the world. It is reported in US$ per tonne, CFR Singapore port. The price published yesterday was $625/tonne, continuing the downward trend seen over recent weeks.
Initially the ASEAN HRC index is being published on a weekly basis, each Monday, with the reference price representing the average spot transaction price for the preceding week. The publication frequency will be increased to daily when the market dynamics and participants support this.
Subscribers to TSI’s Global and Steel services receive the new ASEAN index in their weekly steel price reports, via email, and can access the full price history at any time on TSI’s online price analyser. Any clients interested in a subscription can take a free trial on TSI’s website.
TSI’s equivalent HRC indices for Northern and Southern Europe were adopted as the basis for the world’s first cleared European flat steel swap contracts. These were launched on LCH.Clearnet last year and have seen trading interest and activity levels increase strongly during 2011.
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