Launch of West HRC index, delivered Los Angeles

After a consultation period, Fastmarkets has launched a West steel hot-rolled coil index, delivered Los Angeles, to accompany its steel Midwest and South HRC price indices.

The HRC market dynamics in the West region of the US are unique compared to those in the Midwest and South HRC, due to logistics, import flows, and mill proximity. Most of the market participants in the region purchase their steel from import markets or domestic mills in Midwest and South, facing longer lead times.

This price launch will broaden the coverage of the domestic hot-rolled coil market and add to the suite of prices Fastmarkets has in the US.

The specifications for the proposed index is as follows:

MB-STE-0944 Steel hot-rolled coil index, delivered Los Angeles, $/cwt
Quality: ASTM A1011 Commercial Steel and corresponding grades. 0.09-0.38in thick x 48-72in wide
Quantity: Min 50 short tons
Location: Delivered Los Angeles, Western region states as defined by the US Census Bureau, excluding Alaska and Hawaii
Timing: Spot
Unit: USD per hundredweight
Payment terms: Delivered at place
Publication: Weekly, Tuesday 4-5pm ET
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.

These prices will be a part of the Fastmarkets steel package.

Fastmarkets’ index methodology screens outliers and applies a quantity-weighted model to ensure that the steel hot-rolled coil index, delivered Los Angeles is the most robust in the industry. Fastmarkets has no financial interest in the level or direction of the index.

To provide feedback on these prices or if you would like to provide price information by becoming a data submitter to this, please contact pricing@fastmarkets.com and steel@fastmarkets.com. Please add the subject heading “re: West steel HRC.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, go to the Fastmarkets methodology page.