Following market consultation, Platts, part of S&P Global Commodity Insights, has changed the incoterm for its daily India domestic hot-rolled coil and rebar assessments from delivered to ex-works, effective Nov. 21, 2022.
The change aims to better reflect trading practice in India's domestic spot market. Platts has observed that spot market HRC trading activity from local distributors, dealers and traders is actively being undertaken on an ex-stock Mumbai basis, within the state of Maharashtra and neighboring states. Similarly, spot market rebar trading activity from secondary mills around the production hub of Raipur is primarily on an ex-plant Raipur basis across consumers based in different parts of India.
In line with globally accepted definitions, the ex-works incoterm represents a buyer assuming all costs and responsibilities involved with transporting goods from the named place of delivery, including the seller's factory, warehouse, service centre, office or any other distribution center, as well as loading the goods on the buyer's collecting vehicle.
Platts first proposed the incoterm change on Oct 3: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/100322-platts-proposes-to-change-india-domestic-hot-rolled-coil-rebar-incoterms-to-ex-works
The decision to implement the proposal was communicated in a subscriber note published Oct. 21: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/102122-platts-to-change-india-domestic-hot-rolled-coil-rebar-incoterms-to-ex-works
The assessments have been renamed as follows:
Code (Unit of measurement)
TS01046 (Rupee/mt); TSIDD00 ($/mt)
STRIA00 (Rupee/mt); STRIB00 ($/mt)
Existing specifications for quantity, dimensions, timing and payment terms remain unchanged.
The assessments are published in Platts Steel Alert, SBB Daily Briefing, Steel Markets Daily, Global Market Outlook, World Steel Review, Steel Price Report, Platts Price Analyzer and Platts Market Data Category SQ.
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