SUBSCRIBER NOTE: Platts proposes to merge Platts, TSI US flat steel prices

S&P Global Platts proposes to combine the price assessment process for three US-based steel mill products: hot-rolled coil (HRC), cold-rolled coil (CRC), hot dipped galvanized (HDG) by merging the following price series effective October 2, 2017:

1) S&P Global Platts daily assessment of HRC EXW Indiana (STHRI00) with The Steel Index's daily HRC USA (FOB Midwest mill; TS01018)

2) S&P Global Platts daily assessment of USA CRC (EXW Indiana; STRR100) with TSI's weekly USA CRC (FOB Midwest mill; TS01005) Index

3) S&P Global Platts monthly assessment of USA HDG (EXW Midwest mill; SBO112) with TSI's weekly USA HDG (FOB Midwest mill; TS01010) Index

This would include a revision of the price calculation process to best reflect fair value in the market as well as a revision to underlying specifications.

Platts seeks market feedback on this proposal by June 26, 2017.

The combined price indices would use a volume-weighted average calculation -- as per TSI's current standard -- to determine value on an EXW Indiana basis.

Given the difficulties in valuing diverse inland geographic steel mill locations and the incoterm reflected, a volume-weighted average approach has proven particularly robust at pricing this market.

DATA COLLECTION: Platts proposes to collect transactional data (including deals, firm bids, offers and indicative values) until 3:30 pm US Eastern time.

The data would be collected by surveying active market participants, while any market participant would also be able to submit data to the TSI price reporting portal.

The indices would be published by 4:30 pm US Eastern time.

DATA PRESENTATION: Platts proposes that data collected from the market would be published as "market heards" and, as part of an assessment rationale -- to make all data used open to market scrutiny.

As a result, S&P Global Platts would no longer receive submissions pursuant to the existing TSI Data Provider agreements for companies submitting to TSI's US HRC, CRC, and HDG indices.

Platts proposes a single value be published, which would reflect the volume-weighted average of data collected throughout the day subject to S&P Global Platts editorial guidelines.

The single value would be rounded to the nearest $0.25/st.

S&P Global Platts would retain all product codes.

SPECIFICATIONS: Platts would take into consideration trades, bids and offers for orders exceeding 100 st on an EXW Indiana basis. Trade concluded in a Mid-West geographic range would be considered in the calculation process.

Base payment terms would be net-30 days after delivery, while the unit of measurement would be $/st.

HRC: Chemical and dimensional tolerances would be based on ASTM A 1011-06a Commercial Type B.

Other specifications of HRC would be normalized back to this grade based on prevailing market extras.

Platts would use as a base specification HRC of width between 48-72 inches and thickness of 0.083-0.37 inches.

Platts would reflect indications for delivery 3-8 weeks ahead of the publication date.

CRC: Chemical and dimensional tolerances are based on AISI grades C1005 to C1008, the base-grade range of commercial- quality cold-rolled coil.

Other commercial grades are normalized to the base grade based on the prevailing market extras.

Platts would use as a base specification CRC of width between 48-72 inches and thickness of 0.0272-0.1 inches. Platts would reflect indications for delivery 4-12 weeks ahead of the publication date.

HDG: Chemical and dimensional tolerances would be based on ASTM A 653 CS Type B, G90 normal spangle. Other specifications of HDG would be normalized back to this grade based on prevailing market extras.

Platts would use as a base specification HDG of width between 48-72 inches and minimum thickness of 0.06 inches.

Platts would reflect indications for delivery 4-12 weeks ahead of the publication date.

DATA USAGE: Provision of market data is voluntary.

In terms of data inclusion, transactions would be weighted highest, then bids & offers.

As well as transactions, bids and offers, S&P Global Platts would consider the use of tradeable, or indicative, values collected from active market participants across the supply chain in determining market value, thereby increasing data collection in periods of illiquidity.

INDEX/ASSESSMENT NAME: In light of these proposed changes, S&P Global Platts would change the name of the price indices to the following: 1) Platts TSI US HRC EXW Indiana 2) Platts TSI US CRC EXW Indiana 3) Platts TSI US HDG EXW Indiana

Please submit any feedback, comments or questions about this proposal by June 26, 2017 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.