TSI European Hot Rolled Coil

Transcription

1 TSI European Hot Rolled Coil Index Provider The Steel Index (TSI) Product Specifications Pricing Point Data Provider Publication Time It is the premier provider of independent price information for key steel and iron ore products around the world, based on actual transaction data. Hot Rolled Coil Northern Europe, Domestic Grade: (SCN) Prime mild carbon steel EN10111 DD11 (or Gauge: equivalent) Coil Weight: 2mm upwards. Width: mm metric tonnes Hot Rolled Coil Southern Europe, Domestic Grade: (SCS) Prime mild carbon steel EN10111 DD11 (or Gauge: equivalent) Coil Weight: mm. Width: mm metric tonnes Net Effective Base Price, Ex-Mill Steel mills, traders and service centres as well as steel fabricators, processors and end-consumers from all relevant regions whom have entered into signed agreements with TSI committing them to submit accurate price and related information based on actual transactions. 14:00 UK Time Daily Index Publication Days UK Business Days 1

2 TSI European Hot Rolled Coil (Cont.) of the Steel Indices involves two principal steps: i) Analysis and rationalisation of the data set i.e. statistical checks, validation and removal of outliers. ii) Volume weighted average calculation of the prices submitted based on the rationalised and validated data. (i) Data Rationalisation Procedure All Data submitted is initially screened to ensure that the data set is as tight as possible pre-calculation stage. For each price series: any data more than +/- 20% from the arithmetic average (mean) is excluded and the average recalculated; the remaining data is then screened to remove any data more than +/- 1 times the standard deviation from the average. The highest and lowest prices within the remaining data are also excluded at this point if they have not already been excluded in the previous steps. The remaining data sample is referred to as the core data. (ii) of Reference Prices Each of the Steel Indices is calculated as the volume-weighted average of the core price data submitted. In calculating the volumeweighted reference price the percentage weighting assigned to any single transaction is capped in order to ensure that the volumeweighted average figure remains representative of all core data submitted. 2

3 TSI Turkish Import Scrap Index Provider The Steel Index (TSI) It is the premier provider of independent price information for key steel and iron ore products around the world, based on actual transaction data. Product Specifications Heavy Melt Scrap (HMS) 1 & 2, blended in an 80:20 Mix. ISRI codes inclusive. HMS1 wrought iron and steel scrap ¼ and over in thickness. HMS2 wrought iron and steel scrap, black and galvanised 1/8 and over in thickness. Grades 205 and 206 to exclude cast iron and thin gauge materials. Pricing Point Data Provider Publication Time CFR Iskenderun port, Turkey Scrap producers, scrap traders/brokers, aggregators and consumers from all relevant regions whom have entered into signed agreements with TSI committing them to submit accurate price and related information based on actual transactions. 11:00 GMT every Friday Index Publication Days UK Business Days of the Scrap Indices involves three principal steps: i) Normalisation of all the Data submitted to the reference price specifications and delivery points. ii) Rationalisation of the Data set i.e. statistical checks, validation and removal of outliers. iii) Volume weighted calculation of the Scrap Indices based on the rationalised and validated Data. i) Normalisation Procedure For a given Scrap Index, all Data submitted is initially screened to ensure it matches the specification criteria for one of the allowable products and meets the minimum lot size requirements. Any Data not meeting these criteria is excluded. 1

4 TSI Turkish Import Scrap (Cont.) In the remaining Data sample for a given Scrap Index, the prices for any submissions that do not match exactly the reference product specifications are normalised to the equivalent prices for the reference product, using the prevailing normalisation co-efficients. Normalisation coefficients reflect the value-in-use seen in the market for different product specifications. The normalised price for each relevant submission is then used in the calculation of the Scrap Index. ii) Data Rationalisation Procedure All Data submitted is initially screened to ensure that the data set is as tight as possible pre-calculation stage. If one or more price data points are more than +/- 20% from the arithmetic average (mean) price of the total data set submitted, the data point furthest from the average is excluded and the average recalculated; this procedure is repeated until all price data points are within +/- 20% of the average price of the remaining data set; The standard deviation of the remaining price data set is calculated; The highest and lowest prices within the remaining data are excluded if they are unique; Any remaining price data points more than +/- 1 times the standard deviation from the average (mean) price of the remaining data set are then also excluded. The remaining data set is referred to as the core data. (iii) of Reference Prices Each of the Scrap Indices is calculated as the volume-weighted average price of the core data submitted for the relevant period. In calculating the volume-weighted reference price the percentage weighting assigned to any single transaction is capped in order to ensure that the volume-weighted average figure remains representative of all core data submitted. 2

5 Cleartrade China Steel Index Provider Cleartrade China Steel Index (CCSI) Product Specifications It is provided by Umetal, one of the leading information provider for steels and raw marterials in China. The collection of raw data is looked after by Custeel, a subsidiary of Umetal. Custeel is an integrated website headed by China s Iron & Steel Association (CISA) providing information about steel industry in China. China Hot Rolled Coil (SCC): Quality: In the category of Q235 Quantity: Standard spot-market order size of 100 mt and above Dimensions: 4.75 mm (thickness) x 1500mm (width) x C China Domestic Hot Rolled Ribbed Bar (SBC): Quality: In the category of HRB335 Quantity: Standard spot-market order size of 100 mt and above Dimensions: With a diameter of between mm Location Data Provider Publication Time Index Publication Days Representative Cities Prices sourced from 25 major cities across China Steel producers, traders, end users and stockists from 25 of the largest cities in China whom have entered into signed agreements with CCSI committing them to submit accurate price and related information based on spot transactions. 16:00 China standard time daily UK business days apart from China public holidays Beijing, Shanghai, Chongqing, Tianjin, Hangzhou, Nanjing, Jinan, Hefei, Fuzhou, Nanchang, Guangzhou, Changsha, Wuhan, Zhengzhou, Shijiazhuang, Taiyuan, Shenyang, Harbin, Changchun, Chengdu, Guiyang, Kunming, Xian, Lanzhou, Urumuqi. 1

6 Cleartrade China Steel (Cont.) involves two principal steps: (i) of the Cleartrade China Steel Indices (ii) Normalisation when prices are unavailable for collection (i) of Index Prices To calculate the average price for the steel product for each representative city, Custeel consolidates all price and volume data submitted by the data providers in the respective city and calculates an average based on a volume-weighted arithmetic average. To prevent distortion of prices from small orders, only trades above 100 mt in volume are taken into consideration to calculate the average price for each steel product in each city. To attain the weightings for the volumes of each representative city, Custeel uses the nationwide steel product regional production figures produced by CISA. This is meant to allow for a fairer weighting system given the seasonal nature of steel production in different regions in China. Practically, given that current year figures will not be available, last year s figures for the same period will be used to calculate the weights. (ii) Normalisation Procedure In the unique situation where prices are unavailable for collection in a certain representative city, Custeel will use as reference related steel product prices in the representative city. In the unlikely event that none of the steel prices can be collected in a representative city, Custeel will use the price change of a similar steel product in a neighboring representative city to calculate what the price of the steel product in the representative city should be. 2