SUBSCRIBER NOTE: TSI to change methodology for CFR Taiwan scrap index

The Steel Index will change the methodology for its weekly heavy melting scrap 1/2 80:20 [containerized] CFR Taiwan index in terms of data treatment and presentation, effective December 1, 2017.

This follows a subscriber note on this topic published on August 15.

DATA TREATMENT TSI will focus the price assessment process on the Market-on-Close approach, meaning the indications taking place closest to the publication date will take precedence.

This methodology has proven particularly robust in dealing with trading patterns in the seaborne scrap market.

Price developments in the scrap market can mean different values trade over the course of the week on a CFR Taiwan basis.

As a result of this change there will be no volume-weighted average calculation, but the assessment will be published according to a clear data hierarchy, with confirmed transactions taking precedence.

DATA PRESENTATION Data will continue to be collected from active market participants. Data used in the assessment value will be published as "market heards" to make all information used open to market scrutiny.

As a result, TSI will discontinue receiving submissions pursuant to the existing TSI Data Provider agreements for companies submitting to TSI's CFR Taiwan scrap index.

Data will be collected until 4.30 pm Singapore time and TSI will publish the value to the nearest $0.25/mt.

INDEX NAME TSI will change the name of the index to: Platts TSI HMS 1&2 (80:20) [containerized] CFR Taiwan

Please submit any feedback, comments or questions to pricemethodology@spglobal.com and Terry Chuay at chuay@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.