Proposal to launch West Coast HRC index, delivered Los Angeles

Fastmarkets proposes to launch a price index for West Coast steel hot-rolled coil, following ample feedback from the market suggesting we could provide additional clarity to the steel market with prices focused in that region.

The hot-rolled coil market dynamics in the West Coast region are unique compared with those in the Midwest and South HRC, due to logistics, import flows, and mill proximity.

The US West Coast market has a richer mix of domestic and imported supply of steel. The Port of Los Angeles is a key import hub, due to its geographic proximity to Asia, including major steel-producing nations such as South Korea, Japan and China.

The West Coast HRC market is also more sensitive to trade policies due to its exposure to steel imports. Due to the evolving nature of the trading relationships between the US and its allies, this is a good opportunity for Fastmarkets to expand our coverage on the intersection of policy and prices.

This price launch will expand the coverage of the US HRC market, complementing existing Fastmarkets’ HRC product offerings in the Midwest and South. The new West Coast index will serve as a reference point for HRC market participants, factoring in key market distinctions in the region compared to its counterparts.

The specifications are as follows:

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
Unit: USD per hundredweight
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 part of the Fastmarkets steel package.

The consultation period for this proposed launch starts from Friday October 3, and will end on Friday October 31. The launch will take place, subject to market feedback, on Tuesday November 11.

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 price assessments, or if you would like to provide price information by becoming a data submitter to these prices, please contact Alesha Alkaff by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Alesha Alkaff re: West Coast 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.