Platts proposes to harmonize US steel methodology to time-stamped assessments

S&P Global Platts proposes to harmonize the underlying methodology for its US hot-rolled coil (HRC), cold-rolled coil (CRC), hot-dip galvanized (HDG), plate steel prices and US Midwest shredded scrap adopting a Market on Close assessment process, effective July 1, 2021.

Most steel prices published by Platts, including the majority of global HRC and CRC prices as well as all prices for raw materials, already follow the MOC assessment methodology.

Under the current proposal Platts aims to adopt the MOC approach for daily US HRC, CRC, HDG and plate, as well as Midwest shredded scrap.

Should the change be implemented, these prices would start reflecting repeatable market value prevailing at 3:30 PM EST market close.

The prices are currently calculated as weighted average indices and a full description of the index methodology can be found here: www.spglobal.com

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.

Judgement is explained in a daily rationale.

A full description of the assessments' methodology can be found at www.spglobal.com

The prices affected by the change, can be found in Steel Business Briefing, Steel Markets Daily, Steel Price Report and World Steel Review.

In addition, the prices are listed under Platts Metals Alert pages 1205, 1206, 1228, 1248, 1318 and in the Platts database under the following codes: TS01018, TS01005, AHDGA00, ATSIA00, STPRI00, FEMWD00.

Please send any feedback, comments or questions about this proposal to pl_americas_metals@spglobal.com and pricegroup@spglobal.com by May 7.

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.