SUBSCRIBER NOTE: Platts proposes to combine Platts, TSI European flat steel prices

S&P Global Platts proposes to combine the price assessment process for The Steel Index's (TSI) European flat steel indices with Platts European (domestic) steel assessments, effective August 1, 2017. Platts seeks market feedback on its proposal by June 23, 2017. This subscriber note relates to the following TSI-branded codes: TSI North European HRC: TS01015 TSI South European HRC: TS01003 TSI North European CRC: TS01002 TSI South European CRC: TS01002 TSI North European HDG coil: TS01007 TSI South European HDG coil: TS01008 TSI North South European plate: TS01023 TSI South European plate: TS01024 The Platts-branded assessments this note relates to are: Platts HRC EXW Ruhr: STHRE00 Platts HRC EXW S.EU: SBO1152 Platts CRC EXW Ruhr: SBO1152 Platts CRC EXW S. EU: SB01091 Platts HDG EXW N EU: SB01125 Platts HDG EXW S EU: SB01126 Platts Plate EXW Ruhr: STPRE00 Platts Plate EXW S.EU: SB01185 The proposal includes a revision of the price calculation approach to best reflect fair value in the market, as well as a revision of the underlying specifications. Under this proposal, Platts would focus the price calculation process for its domestic flat steel series in Europe on a volume-weighted index average approach. Given the difficulties in valuing diverse inland geographic locations and the incoterm reflected, a volume-weighted average approach has proven particularly robust at pricing this market. There would be no end-of-day assessment as price formation would be focused on calculating a volume-weighted average price over a specified period. DATA COLLECTION: For daily indices, Platts proposes to collect transactional data until 4:30 pm UK time and 5 pm for publication. For weekly frequency indices, Platts proposes to collect transactional data Monday to Friday, with publication also at 5 pm UK time. The data would be collected by surveying active market participants on the trade route, while any market participant would also be able to submit data to the TSI price reporting portal. Platts would continue receiving submissions pursuant to the existing TSI Data Provider agreements for companies submitting to TSI's European steel indices. SPECIFICATION: Platts proposes to normalize transactional data to an ex-works Ruhr basis for TSI's North European flat steel indices and maintain ex-works Southern Europe as a basis for domestic flat steel series in the region. Unless otherwise stated, Platts would consider all bookings for quantities of 100 mt or above, for delivery four-to-eight-weeks forward with "prompt payment on delivery" as the payment basis. All indices would be published as a single number to two decimal places, with the value rounded to the nearest Eur0.50/mt. HRC Platts proposes to change the grade reflected for TSI's North and South European HRC indices to a structural quality (S235JR) for coils with a standard 1,200-1,500 mm width. The gauge thickness would remain unchanged between 2.5-8.0 mm. CRC: Platts would continue publishing CRC prices for DC01 quality but proposes to update the gauge thickness to between 0.7-2.5 mm for TSI's North and South European CRC indices. The width would also change to between 1,000-1,250 mm. Platts proposes to increase the frequency of the TSI North European CRC index from weekly to daily (TS01002). HDG COIL: Platts would continue publishing HDG coil prices against the current quality specifications (Z275 coating) but proposes to update the gauge thickness to over 1 mm for TSI's weekly HDG coil index in North and South Europe. Plate: Platts proposes to continue publishing plate prices against the current quality specifications (S235JR), but proposes to update the gauge thickness to 15-40 mm for TSI's North and South European plate indices. Platts also proposes to reflect material for delivery 8-12 weeks forward. DATA USAGE: Platts proposes to value the market using confirmed, repeatable transactional data as per the index specifications, reflecting the tradable value on a daily or weekly basis. As well as transactions, bids and offers, Platts proposes to allow for the use of tradable values collected from active market participants across the supply chain in determining market value, thereby increasing data collection in periods of illiquidity. In the absence of relevant transactional data, firm bids or offers, tradable values would be used to value the market. NAMING: All codes would be renamed to "Platts TSI". For example, Platts TSI North European HRC Ex-Works, Ruhr. Please submit any feedback, comments or questions about this proposal to pricemethodology@spglobal.com by June 23, 2017. 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