EU, US HRC indices methodologies – open consultation

In compliance with the International Organization of Securities Commission (IOSCO) principles for price reporting agencies, this consultation, which is open until May 5, 2022, seeks to ensure that our methodology continues to reflect the physical markets under the steel hot-rolled coil index domestic, exw Northern Europe, €/tonne and the steel hot-rolled coil index, fob mill US, $/cwt. This includes all elements of our pricing process, our price specifications and publication frequency.

The specifications of the indices are as follows:

MB-STE-0028 Northern Europe domestic HRC Index
Quality: Grade s235jr, 1,200-1,300mm, thickness 3mm. Standard extras for dimensions excluded
Quantity: Min 50 tonnes Location: Ex-works Northern Europe (defined as Germany, the Netherlands and Belgium)
Timing: Up to 6 weeks
Unit: €/tonne (longer delivery times will be considered under unusual conditions when no material is available for delivery within 6 weeks)
Payment terms: Typical commercial practice in the HRC market. Transactions that are conducted on different payment or credit terms will be adjusted back to the base specifications, taking into account discounts and standard
Publication: Daily, 4pm London time
Notes: Only material offered to/traded within Northern Europe, as defined above, will be considered

MB-STE-0184 Steel hot-rolled coil index, fob mill US, $/cwt
Quality: 0.09 inch-0.38 inch thick x 48-72 inches wide ASTM A1011 Commercial Steel and corresponding grades
Quantity: Min 50 tons
Location: fob US mill, excluding Pacific states (Washington, Oregon, California, Alaska and Hawaii) as defined by the US Census Bureau.
Unit: $ per hundredweight
Publication: Daily by 5pm New York time.
Notes: Standard packaging, raw materials surcharges included. Payment terms are typical commercial practice in the HRC market. Transactions that are conducted on different payment or credit terms will be adjusted back to the base specifications, taking into account discounts and standard commercial terms.

To provide feedback on the annual review of the steel hot-rolled coil index domestic, exw Northern Europe, €/tonne, or if you would like to provide price information by becoming a data submitter to this index, please contact Ross Yeo by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Ross Yeo re: annual methodology review of Fastmarkets Northern Europe HRC Index.”

To provide feedback on the annual review of the steel hot-rolled coil index, fob mill US, $/cwt, or if you would like to provide price information by becoming a data submitter to this index, please contact Thorsten Schier by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Thorsten Schier re: annual methodology review of Fastmarkets US HRC Index.”

Please specify if your response is confidential. Opinions offered in confidential responses may be referenced but will not be attributed in any way.

Fastmarkets will publish the outcome of this methodology review by May 10, including all feedback unless noted as confidential. Any proposals to make material changes, discontinue or launch prices will involve a separate market consultation, the length of which will depend on how substantial the change is for the industry.

To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.