Price Assessment

Hot-rolled steel coil price assessments and methodology

  • What is TSI US Hot Rolled Coil Ex-Works Indiana?
  • How do we assess TSI US Hot Rolled Coil Ex-Works Indiana?
  • What is the Market on Close (MOC) process?
  • How does the MOC work?
  • How does publishing assessments more frequently help navigate volatility?

What is TSI US Hot Rolled Coil Ex-Works Indiana?

The Platts TSI US HRC EXW Indiana (The Steel Index: US Hot rolled coils Ex-works Indiana) assessment is the daily price benchmark for physical hot-rolled coil in the US. The assessment reflects prime hot-rolled coils of new manufacture, with chemical and mechanical tolerances based on ASTM A 1011-06a Commercial Type B. Other specifications of HRC are normalized back to this grade based on prevailing market extras typically applied in the industry.

How do we assess TSI US Hot Rolled Coil Ex-Works Indiana?

This value is based on a timestamped Market on Close (MOC) approach. This assessment is also converted into $/mt (STHIM00) and $/Cwt, using standard conversions.

Platts takes into consideration trades, bids and offers for orders exceeding 100 st on an EXW Indiana basis. Data collected is normalized to US Midwest basis.

The assessment reflects a minimum quantity of 100 ST, with dimensions of W 48-72", T 0.083-0.37". Other quantities may also be considered but in relation to the assessed quantity range. Platts considers payment terms of Net 30 days after delivery.

What is the Market on Close (MOC) process?

The Platts MOC approach to assessing prices is based on the philosophy that price is a function of time. As such, the MOC process yields assessments that are reflective of market value at the close of the typical trading day.

Platts has established clear guidelines for how data is collected, prioritized, and published as part of this process. Under these guidelines, Platts publishes market information including confirmed transactions, firm bids and offers and indications of value throughout the day for the market to see and test.

Platts gives the greatest priority to fully verifiable and transparent market information. Platts considers that a confirmed, verified trade may represent value for the entities involved in the transaction, whereas an unfilled, but confirmed and verified, bid or offer open to the market represents value for the whole market. As such, Platts prioritizes competitive bids and offers that stand at the close of its assessment process above previously reported transactions.

When no transparent bids, offers or transactions are recorded, Platts may consider other verifiable data reported and published through the day. This may include partially confirmed trades, notional trading values and other market information.

How does the MOC work?

The MOC assessment process is suited for all levels of market liquidity. It gives priority to the most specific, transparent, and actionable data. It enables markets to react more quickly to changes, as data can be viewed by market participants in real-time through the publication of "heards in the market."


Platts Steel, HRC/US: Transaction at $1,900/st for 1,000 st from an integrated producer: Midwest service center


By assessing at a specific time – for US ferrous assessments, that means data is collected until 3:30 pm Eastern – the Platts MOC process is designed to reflect values up to the end of the pricing window.

Standardized specifications

Data is normalized back to standard quality, volume, the timing of delivery, terms, and other parameters to ensure like-for-like comparisons.

How does publishing assessments more frequently help navigate volatility?

Volatility in the steel industry is nothing new, but price cycles have grown more extreme. Competitive prices for buyers and sellers change more frequently. Lagging data can cause distortions in volatile markets.

While less frequent assessing might seem to even out the cyclical nature of steel pricing, in fact, daily monitoring yields a more consistent outcome and helps ensure the most up-to-date snapshot of a market. Platts US benchmark steel prices, such as hot-rolled coil, are assessed on a daily basis.

Daily data points lead to a more robust monthly average, with less weight given to a single day compared with a weekly approach that includes only four or five prints per month. In many cases, monthly averages are used as the basis for settlement of derivatives contracts.

Even when markets lack liquidity, commodities still have value. This is evident in exchange-traded markets where even if there is no trading taking place, there is still a value for the commodity published each day. Financial requirements are such that many companies need to be able to mark to market their inventories or positions every day, as well.

Methodology and Specifications


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