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

SUBSCRIBER NOTE: Platts to merge Platts, TSI US flat steel prices S&P Global Platts will 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

Platts will publish the HRC and CRC values on a daily basis and the HDG price series on a weekly basis.

This decision follows a period of market feedback which began June 9 when a subscriber note on the subject was published.

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

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

A volume-weighted average approach has proven particularly robust at valuing a market with diverse inland geographic steel mill locations. DATA COLLECTION: Platts will collect transactional data (including deals, firm bids, offers and indicative values) until 3:30 pm US Eastern time.

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

The indices will be published at 4:30 pm US Eastern time.

DATA PRESENTATION: Data collected from the market will 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 will 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 will publish a single value, which would reflect the volume-weighted average of data collected throughout the day subject to Platts editorial guidelines.

The single value will be rounded to the nearest $0.25/st. Platts will retain all product codes.

SPECIFICATIONS: Platts will 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 will be considered in the calculation process.

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

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

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

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

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

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

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

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

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

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

Platts will 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 will be weighted highest, then bids and offers.

As well as transactions, bids and offers, Platts will consider the use of 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, Platts will 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 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.