Platts harmonizes European steel methodology to time-stamped assessments

Following market feedback, S&P Global Platts has decided 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 Jan. 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.

Platts will adopt the MOC approach for daily HRC and CRC prices on ex-works Ruhr and HRC ex-works Italy bases.

Platts originally proposed the change on Oct. 23 and a relevant subscriber note can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/102320-platts-proposes-to-harmonize-european-steel-methodology-to-time-stamped-assessments.

With the implemented change, prices will start to reflect repeatable market value prevailing at 4.30 pm London time.

The prices are currently calculated as weighted average indices and a full description of the index methodology can be found here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/coal/tsi-coking-coal-index-methodology.

The MOC methodology prioritizes firm, fully transparent and verifiable data.

By giving a clear time-stamp 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.

Judgment is explained in a daily rationale.

A full description of the assessments methodology could be found here: https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf.

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 will also discontinue 12 duplicate steel codes and their monthly averages, effective Jan. 31, 2021.

Platts will continue databasing prices of these products under the remaining equivalent codes listed in the table below:

Please send any feedback, comments or questions about the decision note to ferrous_emea@spglobal.com and pricegroup@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.