SUBSCRIBER NOTE: Platts combines Platts/TSI European flat steel prices

S&P Global Platts has combined the price assessment process for The Steel Index's (TSI) European flat steel indices with Platts' European (domestic) steel assessments, effective August 1, 2017. This follows a period of industry feedback that started June 7 and a decision note on this subject published June 30. This subscriber note relates to the following TSI-branded codes: TSI North European HRC: TS01015 TSI South European HRC: TS01016 TSI North European CRC: TS01002 TSI South European CRC: TS01003 TSI North European HDG coil: TS01007 TSI South European HDG coil: TS01008 TSI North South European plate: TS01023 TSI South European plate: TS01024 The Platts-branded assessments this note relates to are: Platts HRC EXW Ruhr: STHRE00 Platts HRC EXW S.EU: SB01152 Platts CRC EXW Ruhr: STRRE00 Platts CRC EXW S. EU: SB01091 Platts HDG EXW N EU: SB01125 Platts HDG EXW S EU: SB01126 Platts Plate EXW Ruhr: STPRE00 Platts Plate EXW S.EU: SB01185 Platts has revised both the price calculation approach to best reflect fair value in the market and underlying specifications. Platts will focus the price calculation process for its domestic flat steel series in Europe 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: For daily indices, Platts will collect transactional data until 4:30 pm UK time and 5 pm for publication. For weekly frequency indices, Platts will collect transactional data between Monday-Friday, with publication also at 5pm 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 European steel indices. SPECIFICATION: Platts will normalize transactional data to an ex-works Ruhr basis for TSI's North European flat steel indices and maintain ex-works Southern Europe as a basis for domestic flat steel series in the region. Unless otherwise stated, 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. All indices will be published as a single number to two decimal places, with the value rounded to the nearest Eur0.50/mt. HRC: Platts will change the grade reflected for TSI's North and South European HRC indices to a structural quality (S235JR) for coils with a standard 1,200-1,500 mm width. The gauge thickness will remain unchanged between 2.5-8.0 mm.

CRC: Platts will continue publishing CRC prices for DC01 quality, but has updated the gauge thickness to between 0.7-2.5 mm for TSI's North and South European CRC indices. The width has also changed to between 1,000-1,250 mm. Platts has increased the frequency of the TSI North European CRC index from weekly to daily (TS01002). HDG Coil: Platts will continue publishing HDG coil prices against the current quality specifications (Z275 coating), but has updated the gauge thickness to over 1 mm for TSI's weekly HDG coil index in North and South Europe. Plate: Platts will continue publishing plate prices against the current quality specifications (S235JR); but Platts has updated the gauge thickness to 15-40 mm for TSI's North and South European plate indices. Platts will also reflect material for delivery 8-12 weeks forward and against payment terms of "within 30 days of delivery."

DATA USAGE: Platts will value the market using confirmed, repeatable transactional data as per index specifications, reflecting the tradeable value on a daily or weekly basis. As well as transactions, bids and 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 have been renamed to "Platts TSI". For example, Platts TSI North European HRC Ex-Works, Ruhr. 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.