SUBSCRIBER NOTE: S&P Global Platts proposes to combine Platts, TSI North European rebar prices

S&P Global Platts proposes to combine the price assessment process for The Steel Index's (TSI) North European rebar index with Platts North-West Europe rebar assessment, effective September 1, 2017. Platts seeks market feedback on its proposal by July 14, 2017. This subscriber note relates to the following codes: - TSI North European Rebar Domestic EXW: TS01026 - Platts Ex Works North West Europe: STCBE00 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 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: Platts proposes to collect transactional data between Monday-Friday until 4.30 pm UK time, with publication by 5:00 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 North European rebar index.

SPECIFICATION: Platts proposes to normalize transactional data to an ex-works North-West Europe basis for the proposed merged series. Platts would consider all bookings for quantities of 100 mt or above, for delivery 4-8 weeks forward with "prompt payment on delivery" as the payment basis. Platts proposes to update the specification for TSI's North European rebar index to B500B carbon content with the diameter between 12-16mm and a length of 12 meters. The index would be published weekly, as a single number to two decimal places, with the value rounded to the nearest Eur0.50/mt.

DATA USAGE: Platts proposes to value the market using confirmed, repeatable transactional data as per the index specifications, reflecting the tradeable value on a daily or weekly basis. As well as transactions, bids & offers, Platts proposes to allow for the use of tradeable 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, tradeable values would be used to value the market.

NAMING: All codes would be renamed to "Platts TSI". For example, Platts TSI North-West Europe Rebar, Ex-Works.

Please submit any feedback, comments or questions about this proposal to pricemethodology@spglobal.com by July 14, 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.