Platts launches harmonization of European steel methodology to time-stamped assessments

Effective Jan. 4, 2021, S&P Global Platts has harmonized the underlying methodology for its European hot-rolled coil (HRC) and cold-rolled coil (CRC) steel prices, adopting a Market on Close (MOC) assessment process.

Platts originally proposed the change on Oct. 23, 2020, in a subscriber note which can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/102320-platts-proposes-to-harmonize-european-steel-methodology-to-time-stamped-assessments

The decision note was published on Nov. 18, 2020, here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/111820-platts-harmonizes-european-steel-methodology-to-time-stamped-assessments.

Platts has adopted the MOC approach for its daily HRC and CRC prices on ex-works Ruhr and HRC ex-works Italy bases, namely:

With the implemented change, these prices now reflect repeatable market value prevailing at 4:30 pm London time.

The MOC methodology prioritizes firm, fully transparent and verifiable data. By giving a clear time-stamp for assessments, the Platts MOC process is designed to provide assessments that properly reflect outright and spread value during times of high volatility equally well as in times of low liquidity. Judgment may be applied when analyzing pricing data to determine if it meets Platts editorial standards for publication and when normalizing values to reflect differences in time, location, and other trading terms. Judgment is explained in a daily rationale.

A full description of the assessments methodology can be found here: https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf

The prices were previously calculated as weighted average indices and a full description of the index methodology can be found here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/coal/tsi-coking-coal-index-methodology

The prices affected by the change, can be found in Steel Business Briefing, on Platts Metals Alert pages 1200, 1204, 1233 and in the Platts database.

As part of the change, Platts will also discontinue 12 duplicate steel codes and their monthly averages, effective Feb. 1, 2021, and will publish a separate subscriber note to inform market participants.

Please send any feedback, comments or questions about the decision note to ferrous_emea@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.