The specifications have been designed to reflect the most commonly traded spot volumes in the Midwest region and Metal Bulletin Group has identified sufficient market liquidity in the US HRC market to justify the implementation of an index-based methodology.
The index methodology will ensure increased robustness through rigorous mathematical analysis of gathered pricing data that has already been applied successfully in many other markets by the Metal Bulletin Group.
Following a consultation phase ending on July 10, the index will be published weekly on Thursdays, or on the next working day in the event that a Thursday falls on a public holiday. The specifications under consideration for the index are as follows:
Currency and unit: US dollar per hundredweight
Basis: fob Midwest mill
Price type: Index
Frequency: Weekly, Thursday
Minimum tonnage: 50 tons
Gauge: 0.09-0.38 inch thick x 48-72 inches wide
Quality: ASTM A1011 commercial sheet and corresponding grades
Raw materials surcharges: Included
The Metal Bulletin Group’s index methodology screens outliers and applies a tonnage-weighted model to ensure that the HRC price will be the most robust in the industry.
The group has no financial interest in the level or direction of the index.
To request the methodology for the index and/or to send any feedback regarding the proposed change, please email Thorsten Schier at email@example.com
Metal Bulletin Group is proposing to switch its weekly AMM hot rolled coil (HRC) assessment, basis fob US Midwest mill, to an index from July 13.