What is ‘Cut & Bent’ rebar?
Cut & Bent refers to rebar which has been fabricated into pre-ordered lengths and shapes.

Why does TSI publish a Cut & Bent index?
Given the volatility of steel prices, long-term contracts are increasingly being negotiated not with a fixed steel price for the term but with reference to an independently published, variable price index that reflects the evolving market price for steel during the course of the contract.

Prior to the existence of a robust Cut & Bent index, such index-linked long-term contracts involving cut & bent rebar have typically based prices either on a rebar index or a scrap index (the common feedstock for rebar). However, indexing against either of these products has not taken into account the additional costs involved in preparing cut & bent rebar, such as the fabrication itself, storage, insurance and other costs, which do not necessarily track the changes in the spot market rebar or scrap prices.

As a result, contracts, which are often for construction projects spanning many months or even years, have frequently been subject to re-negotiation, default, or one party experiencing a debilitating margin squeeze.

When long-term contracts are initially set-up, their aim is to achieve a deal which is acceptable and equable to both sides over the full period of the contract, to ensure continuity of supply and prevent defaults. Use of TSI’s Cut & Bent rebar index can help buyers and suppliers to achieve this objective.

How is TSI’s Cut & Bent index derived?
TSI’s Cut & Bent rebar price is based on TSI’s Northern European rebar spot price index plus an assessment of the fabrication and other costs involved in manufacturing cut and bent rebar in the UK. It is published weekly and expressed in £/tonne.

Who is TSI’s Cut & Bent index intended for?
TSI’s Cut & Bent index is a useful tool for anyone involved in handling cut & bent rebar, on the buying or selling side, interested either in simply tracking the UK spot market price or in index-linking their contracts over a medium or long-term period.

How do I start receiving TSI’s Cut & Bent index?
Contact us at support@thesteelindex.com and we will be glad to set up a subscription service for you. For an annual fee of £300 + VAT (if applicable), you will receive TSI’s weekly Cut and Bent index price by email, plus access to TSI’s Northern & Southern European rebar spot prices and the spreads to the LME billet price on the TSI website. You will also have access on the website to the full archives of TSI’s prices listed above, since their publication began. For more information or to subscribe email Tim Hard hard@thesteelindex.com.