SUBSCRIBER NOTE: Platts to combine Platts, TSI North European rebar price indices

S&P Global Platts will 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.

This decision follows a period of industry feedback that started on June 30 with the publication of a proposal note on this subject.

This subscriber note relates to the following codes:

TSI North European Rebar Domestic EXW: TS01026 Platts Ex Works North West Europe: STCBE00

The change 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 change, Platts will 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 will be no end-of-day assessment as price formation will be focused on calculating a volume-weighted average price over a specified period.

DATA COLLECTION:

Platts will collect transactional data between Monday-Friday until 4.30 pm UK time, with publication by 5 pm UK time.

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

Platts will continue receiving submissions pursuant to the existing TSI Data Provider agreements for companies submitting to TSI's North European rebar index.

SPECIFICATION:

Platts will normalize transactional data to an ex-works North-West Europe basis for the proposed merged series.

Platts will 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 will update the specification for TSI's North European rebar index to B500B carbon content with the diameter between 12-16 mm and a length of 12 meters.

The index will be published weekly, as a single number to two decimal places, with the value rounded to the nearest Eur0.50/mt.

DATA USAGE:

Platts will 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 will 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 will be used to value the market.

NAMING:

All codes will 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.

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.