Platts proposes to harmonize European steel methodology to time-stamped assessments

S&P Global Platts proposes to harmonize the underlying methodology for its European hot-rolled coil (HRC) and cold-rolled coil (CRC) steel prices, adopting a Market on Close (MOC) assessment process, effective January 4, 2021.

Most steel prices published by Platts, including the majority of global HRC and CRC prices as well as all prices for raw materials, already follow the MOC assessment methodology. Under the current proposal Platts aims to adopt the MOC approach for daily HRC and CRC prices on ex-works Ruhr and HRC ex-works Italy bases.

Should the change be implemented, these prices would start reflecting repeatable market value prevailing at 16.30 London time market close. These prices are currently calculated as weighted average indices and a full description of the index methodology can be found here: www.spglobal.com

The MOC methodology prioritizes firm, fully transparent and verifiable data. By giving a clear timestamp for assessments, the Platts MOC process is designed to provide assessments that properly reflect outright and spread value during times of high volatility equally well as in times of low liquidity. Judgment may be applied when analyzing pricing data to determine if it meets Platts editorial standards for publication and when normalizing values to reflect differences in time, location, and other trading terms. Judgement is explained in a daily rationale.

A full description of the assessments methodology could be found here www.spglobal.com

The prices affected by the change, can be found in Steel Business Briefing, on Platts Metals Alert pages 1200, 1204, 1233 and in the Platts database under the following codes: STHRE00, STRRE00 and SB01152.

As part of the change, Platts also proposes to discontinue 12 duplicate steel codes and their monthly averages, effective January 31, 2021. Platts would continue databasing prices of these products under the remaining equivalent codes listed in the table below:

Please send any feedback, comments or questions about this proposal to Ferrous_EMEA@spglobal.com and pricegroup@spglobal.com by November 13, 2020.

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.