Subscriber Note: Platts to launch spreads for Steel Mill Economics

Platts intends to launch January 14, 2013, a series of Steel Mill Economics spreads. These daily global spreads will highlight the dynamic economics of blast and electric arc furnaces (BFs and EAFs) in the steelmaking process. The intention is to provide the market with data to help analyze margins and yields of BFs and EAFs (input costs such as iron ore, coke, coking coal and ferrous scrap) versus output price assessments (finished and semi-finished steel products). Daily or weekly in frequency, these global spreads will also be published as monthly averages. The goal is to deliver analytical solutions for steel mills, banks and investors and the trading community for comparing market standards (profitability/productivity), industry benchmarks and cash flow management. Proposed for the initial launch are: China Coking Margin (CCM)* published in both RMB and USD; two China Flat Steel Spreads (CFSS; one using TSI iron ore index, one using IODEX iron ore assessment); two China Long Steel Spreads (CLSS; one using TSI, one using IODEX); two China Hot Metal Spreads (CHMS; one using IODEX, one using TSI); China Billet-Rebar Spread (CBRS); Two Turkey Scrap-Rebar Spreads (TSRS; one using TSI scrap, one using Platts scrap); Two Turkey Scrap-Black Sea Billet Spreads (TSBS; one using TSI scrap, one using Platts scrap); US Scrap-HRC Spread (US SHRC); US Scrap-HRC Futures Spread (US SHRCF); and US Scrap-Rebar Spread (US SRS). The asterisk (*) denotes that this weekly index will be calculated on Fridays. Among the Platts products intending to publish some or all of the Steel Mill Economics spreads are: SBB Steel Markets Daily; The SBB Briefing Price Analyzer; China Analytics; Raw Materials Xtra; TSI Price Analyzer; World Steel Review; Global Market Outlook, American Steel Review, and Platts Metals Alert. The global spreads would also be available as Platts Market Data. Please address any feedback or questions by January 3, 2013, to Joe Innace, joseph_innace@platts.com, or Francis Browne, francis_browne@platts.com, and copy pricegroup@platts.com.