SUBSCRIBER NOTE: S&P Global Platts to combine Platts, TSI EU, India ferrous scrap indices

S&P Global Platts will combine its processes for various ferrous scrap indices and assessments covering Europe as well as Turkish and Indian imports by September 1, 2017. This decision follows a period of industry feedback after a proposal note was published on this subject on May 8, 2017. This note relates to the following TSI-branded indices: shred CFR Iskenderun; Plate & Structural CFR Iskenderun; A3 CFR Marmara and shred CFR Nhava Sheva. The Platts-branded assessments this note relates to are: HMS 1&2 (70:30) FOB Rotterdam; A3 FOB Black Sea and shred CFR Nhava Sheva. Platts will revise both the price specifications in order to best reflect fair value in the market, as well as underlying methodology. HMS 1&2 (70:30): Platts will change the grade reflected to HMS 1&2 (75:25) from HMS 1&2 (70:30) for the FOB Rotterdam value in order to reflect the more commonly-traded specification. The FOB Rotterdam value will be calculated as a netback using the Handysize Platts freight assessment for the Rotterdam-Aliaga, Turkey route (MSRAT00) from a newly-created CFR Turkey HMS 1&2 (75:25) value. The CFR Turkey value will be assessed using cargoes for delivery three-eight weeks forward and whose tonnage exceeds 10,000 mt. A3: Platts will move the basis of its A3 FOB Black Sea price series (FEBSD00) to CFR Turkey. Platts will discontinue the TSI-branded CFR Marmara A3 value. Platts will value the A3 price series using cargoes for delivery one-four weeks forward and whose tonnage is less than 10,000 mt with payment terms normalized to cash against documents. "Shortsea" material will form the basis of this price series. SHREDDED, P&S: Platts will discontinue the shredded and P&S TSI-branded indices currently published on a CFR Iskenderun (Turkey) basis. This is due to the stability in inter-grade differentials. INDIA: Platts will retain the CFR Nhava Sheva weekly price code AAXRQ04 and discontinue the code TS01029. Platts will assess its remaining price series using trade whose tonnage exceeds 200 mt and is due for delivery two-eight weeks forward. Unless otherwise stated, for all the codes that will continue to be published under this change, Platts will use "L/C at sight" as the payment basis. The prices will be published as a single number to two decimal places, with the values rounded to the nearest $0.25/mt. DATA TREATMENT: Platts will focus the price assessment process for the above price series on the Market-on-Close (MOC) assessment approach. This methodology has proven particularly robust in dealing with the trading patterns in the seaborne scrap market. There will be no volume-weighted average calculation as price formation will be focused on the end-of-day assessment. DATA COLLECTION: Platts will collect transactional data until 4:30 pm UK time. The data will be collected by surveying active market participants on the trade route, while any market participant will also be able to submit data to the TSI price reporting portal. Platts will discontinue receiving submissions pursuant to the existing TSI Data Provider agreements for companies submitting to TSI's Turkish & Indian scrap indices. NAMING: All remaining codes will be renamed to "Platts TSI". For example, Platts TSI HMS 1&2 (75:25) CFR Turkey. Please submit any feedback, comments or questions about this proposal to pricemethodology@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.