The specifications have been designed to reflect the most commonly traded spot volumes in the Midwest region and AMM has identified sufficient market liquidity in the US hot rolled coil 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.
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 short tons
Gauge: 0.09 to 0.38 inch thick x 48 to 72 inches wide
Quality: ASTM A1011 Commercial Sheet and corresponding grades
Raw material surcharges: Included
The MB Group’s index methodology screens outliers and applies a tonnage-weighted model to ensure that the hot-rolled coil price is the most robust in the industry.
The group has no financial interest in the level or direction of the index.
To send any feedback regarding the proposed change, please email Thorsten Schier.
Due to the amount of feedback received from the market, Metal Bulletin sister publication AMM is extending the consultation period for the switch from its weekly hot rolled coil assessment basis fob Midwest mill to an index until July 27.