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

S&P Global Platts proposes to combine the price assessment process for two US-based steel plate price series. Platts proposes to change the methodology of these two steel plate prices, as well as review its US steel plate coverage. All of these proposed changes would be carried out November 1, 2017. Platts is seeking feedback on these proposed changes by July 28, 2017. This subscriber note relates to the following TSI-branded price series: TSI Plate USA Domestic Production FOB Midwest Mill Weekly (TS01025) TSI Plate USA Domestic Production FOB Midwest Mill Monthly Average (TSMAY03) This subscriber note relates to the following Platts-branded price series: Platts Steel Plate ex-works US Southeast $/st Daily (STPR100) Platts Steel Plate ex-works US Southeast Eur/Mt Daily (STPIE00) Platts Steel Plate ex-works US Southeast $/CWT Daily (STPIH00) Platts Steel Plate ex-works US Southeast $/mt Daily (STPIM00)

US STEEL PLATE: Platts proposes to discontinue the TSI-branded steel plate codes TS01025 and TSMAY03, but to retain the Platts-branded codes STPR100, STPIE00, STPIH00 and STPIM00. As part of this proposal, Platts proposes to change the incoterm reflected in its US Steel Plate assessment (STPR100) to delivered Midwest from ex-works Southeast in order to best reflect the trading patterns in the underlying market. Steel plate mills have traditionally normalized prices to a delivered basis in order to remain competitive in regions where they have no production presence. Platts would increase its quantity order size to 20 st minimum from 5 st and maintain a delivery window of 4-12 weeks and dimensions to 96 inches width, 0.375-2 inches thickness and to 240 inches length. The proposed changes would also be reflected on calculations to Euro/mt (STPIE00), $/CWT (STPIH00) and $/mt (STPIM00). Prices would be assessed daily. These price series would use a volume-weighted average calculation -- as per TSI's current standard -- to determine value on a delivered Midwest basis.

DATA PRESENTATION: Data collected from the market would be published as "market heards" and in market commentaries -- in order 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 steel indices. Platts would publish all price series covered in this subscriber note as a single value. The single values would be rounded to the nearest $0.25/lt.

DATA COLLECTION: Platts would 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 at 4:30 pm US Eastern time.

DATA USAGE: In terms of data inclusion, transactions would be weighted highest, followed by bids and offers in the volume-weighted average calculations. As well as transactions, bids and offers, Platts would consider the use of indicative values collected from active market participants across the supply chain in determining market value in its TSI-branded codes as well, thereby increasing data collection in periods of illiquidity.

INDEX/ASSESSMENT NAME: In light of these changes, Platts proposes to both change the name of the price series to start with "Platts TSI" and otherwise clarify their naming conventions, for example: "Platts TSI Steel Plate Delivered Midwest."

FEEDBACK: Please submit any feedback, comments or questions on this subject by August 1, 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.