SUBSCRIBER NOTE: Platts to change Turkey ARC Steel Tracker calculation method

Platts has decided to change the calculation method of its Platts Turkey ARC Steel Tracker (Turkey ARC) indices to account for increased price volatility and changes in inter-commodity price spreads.

Platts will stop using a longer term fixed weighting as part of the calculation process for the individual index weightings for scrap, billet and rebar indexes and instead use a dynamic weighting system to improve accuracy and alignment with shorter term trends.

This change, effective January 4, 2016 onward, will affect daily Turkey ARC indexes published apiece for rebar, billet and ferrous scrap (HMS 80:20), based on 30-day moving average and 60-day moving averages. There are also monthly averages for the data.

In addition, the change will affect the corresponding monetary values for each index published, which use Platts price assessments as their base.

Platts launched on December 1, 2014, a new series of daily data analysis identifying price trends and price direction in the Turkish rebar, billet and scrap markets.

Platts Turkey ARC has been designed to analyze price relationships of inputs and outputs to regional electric arc furnaces and rolling mills, and daily index and monetary values are proposed for each commodity and the market.

The analysis is undertaken on a related set of commodity prices, which Platts publishes daily: STCBM00 Rebar FOB Turkey, FETKD00 Ferrous Scrap HMS 80:20 CFR Turkey, and STBLB00 Billet FOB Black Sea (given an adjustment factor based on freight rates to allow for a net forward CFR Turkey billet value to be created).

Data is published in Steel Markets Daily, Steel Price Report, and Steel Raw Materials Monthly.

Please submit any comments or questions to Hector Forster, hector.forster@platts.com, with a cc to PriceGroup@platts.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.