Platts to harmonize US steel methodology to time-stamped assessments

S&P Global Platts will 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 Oct. 1.

The change was scheduled for July 1 following the original proposal note on April 8:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/040821-platts-proposes-to-harmonize-us-steel-methodology-to-time-stamped-assessments

The decision was based off of extensive market feedback and helps to align the Platts pricing approach across regions. Most steel prices published by Platts, including the majority of global HRC and CRC prices as well as raw materials, already follow the MOC assessment methodology.

Platts will adopt the MOC approach for daily US HRC, CRC, HDG and plate prices, as well as Midwest shredded scrap. These prices will be reflecting the repeatable market value at 3:30 PM EST market close.

By giving a clear time stamp for assessments, the 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.

The MOC methodology prioritizes firm, fully transparent and verifiable data.

All surveyed market prices will continue to be tested throughout the day through published real-time market heards available on Platts Metal Alert (PMA) and STL page 0700.

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.

The MOC process will replace the current volume-weighted average index approach.

A full description of the assessments' methodology can be found at https://www.spglobal.com/platts/en.

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 decision to pl_americas_metals@spglobal.com and pricegroup@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.