Steel, ferrous scrap, ferroalloys and noble alloys

 
 
[STEEL ]




METHODOLOGY AND SPECIFICATIONS GUIDE

Steel, ferrous scrap, ferroalloys and noble alloys
(Latest update: February 2015)

INTRODUCTION                                  2   PART V: CORRECTIONS                          6   STEEL MILL ECONOMICS; SPREADS       31
HOW THIS METHODOLOGY STATEMENT IS ORGANIZED   2
                                                  PART VI: REQUESTS FOR CLARIFICATIONS             REVISION HISTORY                    33
PART I: DATA QUALITY AND DATA ACQUISITION     2   OF DATA AND COMPLAINTS                       6
WHAT TO REPORT                                2
HOW TO REPORT                                 3   PART VII: DEFINITIONS OF THE TRADING LOCATIONS
MOC DATA PUBLISHING PRINCIPLES                3   FOR WHICH PLATTS PUBLISHES INDEXES OR
                                                  ASSESSMENTS                                  8
PART II: SECURITY AND CONFIDENTIALITY         3
                                                  CARBON STEEL                                 8
PART III: CALCULATING INDEXES                     FLAT                                        13
AND MAKING ASSESSMENTS                        4   REBAR                                       17
MOC PRICE ASSESSMENT PRINCIPLES               4   SEMI                                        19
NORMALIZATION PRICE ADJUSTMENT TECHNIQUES     4
PRIORITIZING DATA                             4   STAINLESS STEEL                             20
ASSESSMENT CALCULATIONS                       5
LOADING/DELIVERY LOCATION                     6
FREIGHT DIFFERENTIALS                         6   RAW MATERIALS                               22
EMBEDDED OPTIONS                              6   BULK FERROALLOYS                            25
GENERAL TERMS & CONDITIONS                    6   NOBLE ALLOYS                                28
CREDIT/PAYMENT TERMS                          6   FERROUS SCRAP                               29
                                                  METALLICS                                   30
PART IV: PLATTS EDITORIAL STANDARDS           6
METHODOLOGY AND SPECIFICATIONS GUIDE             STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




 INTRODUCTION                                                                  ■■   Part I describes what goes into Platts indexes and price values,            measurement are used, and what conversion factors are used to
                                                                                    including details on what data market participants are expected to          move between units of measurement, where relevant.
Platts’ methodologies are designed to produce price assessments that are            submit, the process for submitting data and criteria for timeliness
representative of market value, and of the particular markets to which they         of market data submissions.
relate. Methodology documents describe the specifications for various                                                                                       PART I: DATA QUALITY AND DATA
products reflected by Platts’ assessments and indexes, the processes and       ■■   Part II describes any security and confidentiality practices that       ACQUISITION
standards Platts adheres to in collecting data, and the methods by which            Platts uses in handling and treating data.
Platts arrives at final assessment values for publication. These guides are
freely available on Platts’ website for public review.                         ■■   Part III is a detailed account of how Platts collects bids, offers,    Platts’ objective is to ensure that the submission of transactional
                                                                                    trades and other market data, and what Platts does with the            information and other data inputs that editors use as the basis for their
Platts discloses publicly the days of publication for its price assessments         data to formulate its indexes and assessments. It includes             price assessments is of the highest quality. Ensuring that data used in
and indexes, and the times during each trading day in which Platts                  descriptions of the methods that Platts uses for reviewing data,       Platts assessments is of high quality is crucial to maintaining the integrity
considers transactions in determining its assessments and index levels.             and the methods used to convert raw data into indexes and              of Platts’ various price assessment processes.
This schedule of publication is available in Platts methodology guides.             assessments, including the procedures used to identify anomalous
Where this schedule is disrupted by public holidays; a schedule of                  data. This section describes how and when judgment is applied          Platts encourages entities that submit any market data for consideration
services/publications affected is available at the following link: http://          in this process, the basis upon which transaction data may be          in its assessment processes to submit all market data that they have
www.platts.com/HolidayHome.                                                         excluded from a price assessment, and the relative importance          which may be relevant to the assessment being made. Platts’ aim is to
                                                                                    assigned to each criterion used in forming the price assessment.       determine the full circumstances surrounding all reported transactional
The dates of publication and the assessment periods are subject to                  This section describes the minimum amount of transaction data          data, including details of quality, specifications, order sizes, dimensions,
change in the event of outside circumstances that affect Platts’ ability to         required for a particular price assessment to be published, and the    lead times and any locational and loading/delivery information. Platts
adhere to its normal publication schedule. Such circumstances include               criteria for determining which values are indexes, and which are       uses that information to determine a typical and repeatable market level
holidays, network outages, power failures, acts of terrorism and other              assessments, based on reported transactions and other market           for the commodity being assessed.
situations that result in an interruption in Platts’ operations at one or           information. Finally, this section describes how Platts addresses
more of its worldwide offices. In the event that any such circumstance              assessment periods where one or more reporting entities submit
                                                                                                                                                                                                               WHAT TO REPORT
occurs, Platts will endeavor, whenever feasible, to communicate publicly            market data that constitute a significant proportion of the total
any changes to its publication schedule and assessment periods, with as             data upon which the assessment is based.
much advance notice as possible.                                                                                                                           ■■   Confirmed transactions
                                                                               ■■   Part IV explains the process for verifying that published prices
All Platts methodologies reflect Platts’ commitment to maintaining best             comply with Platts’ standards.                                         ■■   Firm bids that are open to the marketplace as a whole, with
practices in price reporting.                                                                                                                                   standard terms
                                                                               ■■   Part V lays out the verification and correction process for revising
Platts’ methodologies have evolved to reflect changing market conditions            published prices and the criteria Platts uses to determine when it     ■■   Firm offers that are open to the marketplace as a whole, with
through time, and will continue to evolve as markets change. A revision             publishes a correction.                                                     standard terms
history, a cumulative summary of changes to this and future updates, is
included at the end of the methodology.                                        ■■   Part VI explains how users of Platts assessments and indexes can       ■■   Expressions of interest to trade with published bids and offers,
                                                                                    contact Platts for clarification of data that has been published,           with standard terms
                                                                                    or to register a complaint. It also describes how to find out more
  HOW THIS METHODOLOGY STATEMENT IS ORGANIZED
                                                                                    about Platts’ complaint policies.                                      ■■   Indicative values, clearly described as such

This description of methodology for indexes and assessments is divided         ■■   Part VII is a list of detailed specifications for the trading          ■■   Reported transactional activity heard across the market, clearly
into seven major parts (I-VII) that parallel the entire process of producing        locations for which Platts publishes indexes or assessments                 described as such
price values for the specified market period.                                       in this commodity. This section describes why specific units of



                                                                                                 COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL              2
METHODOLOGY AND SPECIFICATIONS GUIDE                 STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




■■   Other data that may be relevant to Platts assessments                    day is analyzed during the assessment process. Toward the close of the           considering information collected through MOC, particularly if an MOC
                                                                              day, Platts focuses its assessment process seeking to publish named firm         environment yields little or no data on a given day.
                                                                              bids and offers, expressions of interest to trade and confirmed trades,
                                                  HOW TO REPORT
                                                                              with all relevant details. Transparent data is prioritized in the assessment     For analysis of the data, Platts survey methodologies will typically give
                                                                              process, because it is available to the entire market for testing.               priority to data collected that is confirmed and published, and which is
Platts accepts information provided for publication in real-time across a                                                                                      most relevant to closing values in the markets covered. Bids and offers
wide variety of media. The following reporting methods are accepted by        Platts applies a survey assessment methodology where market conditions           published by Platts are considered to be firm until Platts is informed
Platts’ metals editorial staff:                                               do not support an MOC assessment environment. Platts collects a                  otherwise, or until the close of the assessment process for the day,
                                                                              wide variety of transactional and market information through a survey            whichever comes first. Platts will consider all firm bids and offers as
■■   Telephone                                                                of participants, which typically includes communicating with sources             open to the market at large and executable unless informed otherwise by
                                                                              via phone, email, and instant messaging, among other communication               the counterparty submitting the market information. If no communication
■■   Email                                                                    methods. Although the survey assessment methodology is in many                   is made to Platts to withdraw or change the parameters of the bid or
                                                                              respects similar to the MOC assessment methodology there are key                 offer, it is assumed that it is available to the marketplace. Platts seeks
■■   Electronic/instant messages                                              distinctions between the assessment approaches.                                  verification of any transaction originating from a bid or offer submitted for
                                                                                                                                                               inclusion in the Platts MOC process.
■■   Fax                                                                      In such environments, Platts collects as much data as possible, including
                                                                              bids, offers, interest to trade, transactions that have been previously          Platts editorial guidelines governing its assessment process require
                                                                              concluded, and indications of value from participants in the market. Platts      it must consider only those transactions, bids or offers where market
                         MOC DATA PUBLISHING PRINCIPLES
                                                                              seeks to collect, confirm and analyse as much information as possible            participants perform under typical contractual terms. Platts accepts
                                                                              in survey markets, and encourages market participants to provide all             that individual companies may have trading limits with counterparties
Platts has progressively adopted its Market on Close (MOC) assessment         relevant information. Platts publishes credible information collected            and that national legislation may prevent companies from dealing in
process to assess the value of steel and ferrous scrap in many markets.       that meets our methodological standards, typically through real-time             materials of certain origins. Such counterparty issues are dealt with
The MOC assessment process establishes core standards for how data is         information services and with as much transparency as possible. This             on a case-by-case basis. Platts tracks all circumstances surrounding
collected and published, how data is prioritized by value, and ultimately     information is considered when determining and completing a final                trades reported during its MOC assessment process, and any issues
how data is analyzed in the course of completing Platts assessments.          assessment.                                                                      regarding performance. Platts cannot make any guarantee in advance
                                                                                                                                                               about how and whether market information received and published
Transparency underpins Platts data publishing processes in markets.           All Platts market reporters are trained to analyse the data they receive         but not fully adhering to its defined methodology will be incorporated
Under Platts MOC guidelines for collecting and publishing data, Platts        and to question sources to establish the fullest set of information              in its final assessments.
publishes market information including but not limited to firm bids and       possible around price data. Reporters are trained to seek a wide variety
offers, expressions of interest to trade and confirmed trades that are        of information to test reported transactional activity, including the specific
received from market participants throughout the period being assessed.       price agreed, the counterparty to the trade, the point of origin and              PART II: SECURITY AND CONFIDENTIALITY
                                                                              destination for delivery of the commodity, the size of the transaction, any
Information may be published in real-time on Platts information service,      physical quality commitments agreed as part of the trade, the terms and          Data is stored in a secure network, in accordance with Platts’ policies and
Platts Metals Alert. Platts publishes information received so that it can     conditions of a trade and when a trade was agreed.                               procedures. Platts steel and ferrous scrap assessments are produced in
be fully tested by the market at large. Information collected and published                                                                                    accordance with Platts’ Market on Close assessment methodology. This
may include the identities of buyers and sellers, branded material,           Survey and MOC environments are linked. Survey assessment                        means that all data for use in Platts assessments may be published by
confirmed prices, volumes, location, and stated trading terms.                environments are a common ground for future MOC assessment                       Platts editorial staff while assessing the value of the markets.
                                                                              environments, and Platts regularly reviews its survey environments to
Platts’ assessments are designed to reflect repeatable market value at        determine which may be suited to an MOC approach. Similarly, MOC                 Platts does not have confidentiality agreements for information provided
the close of the assessment process. Platts tracks market price evolution     environments are underpinned by data collected by surveying sources              for use in its steel and ferrous scrap assessments.
during the entire day, and publishes a wide range of data relating to         throughout the day, to ensure that Platts is aware of market values as
market value as it does so. All data that has been published through the      the MOC process begins, and so that Platts has data to review when



                                                                                                COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                   3
METHODOLOGY AND SPECIFICATIONS GUIDE                STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




 PART III: CALCULATING INDEXES                                                assessments. The time of commercial activity is an important attribute          can time of transactional activity considered for inclusion in the price
 AND MAKING ASSESSMENTS                                                       considered in all Platts price assessments. The time that a bid or offer is     assessment process vary through the day, other key attributes often vary
                                                                              shown to the market --or a transaction concluded -- is vitally important        from the base standard reflected in Platts assessments for steel and
                                                                              in understanding the market value of the respective commodity, in the           ferrous scrap traded in the market.
                       MOC PRICE ASSESSMENT PRINCIPLES                        same way that the quality of the steel or ferrous scrap, where it will be
                                                                              delivered, and when it will be delivered are important factors. By clearly      The quality of steel or ferrous scrap, delivery location, and other specific
As a publisher owned by McGraw Hill Financial, Platts places                  reflecting value at a defined point in time, Platts seeks to properly reflect   terms of trade may be varied in the physical commodity markets assessed
independence and impartiality at the heart of its price assessments. Platts   outright and spread values.                                                     by Platts. This is one reason among many why data collected from these
has no financial interest in the price of the products or commodities on                                                                                      markets may not be simply averaged to produce a representative value.
which it reports. Platts’ overall objective is to reflect the transactable    MOC guidelines are designed to avoid distortion of the final price
value of the commodity assessed. Platts’ indices and assessments are          assessments by eliminating inputs that are not fully verifiable, and by         Because of the complex nature of the physical markets, data typically
based on its own surveys of market participants completed by Platts           disregarding one-offs or unrepeatable transactions, or those that may           must be aligned with standard definitions to allow for a fully
market reporters each day. Platts assessments are based on as broad a         distort the true market level. Transactions between related parties are, for    representative final published assessment. Platts aligns data collected
cross-section of the market as possible, including distributors, traders,     instance, not considered in the assessment process.                             through an analysis of the physical steel/scrap markets with its standard
producers, end-users and brokers.                                                                                                                             assessment specifications through a process called normalization.
                                                                              Platts does not specify a minimum amount of transaction data, or a
All transactional data is factored equally for use in a particular            transaction data threshold, for the publication of its price assessments.       Normalization is an essential price adjustment technique applied by
assessment, as long as such transactions are deemed repeatable and            Physical commodity markets vary in liquidity. Any particular market             Platts, to align reported market information to reflect the economic
within the established specifications for each product. Transactions are      analyzed on its own will typically demonstrate rising and falling levels of     relationship between specific reported activity and the base standard
not evaluated on a weighted basis.                                            transactional activity through time. Platts is committed to providing an        reflected in Platts price assessments.
                                                                              assessment of value for every market that it covers, equally well in times
Through the progressive adoption of the MOC assessment process, Platts        of heightened or reduced liquidity.                                             By surveying markets and observing the economic impact of variance
seeks to establish and publish the value of steel and ferrous scrap in                                                                                        from the base standard reflected in Platts assessments, Platts regularly
various locations that prevails at the close of the assessment process        Platts seeks to receive market information from as broad a cross section        normalizes disparate information from the diverse physical commodity
itself. Platts has aligned the timestamps reflected in its assessments        of the market as possible. If a very limited number of market-makers are        markets back to the standard reflected in Platts price assessments. This
with what typically is a period of high activity in the markets that Platts   active in the market, or if a limited number submit data that constitutes a     is done by analyzing freight rates (for locational differences), quality
observes. Platts believes that aligning its price assessments to typical      significant proportion of the total data upon which the assessment is based,    differentials (for quality differences), the movements of all markets
periods of greater market activity and liquidity provides a robust basis      Platts will continue to seek fully transparent and verifiable data from the     through time (for time differences) and other differentials associated with
upon which to derive a reliable assessment of market value.                   market at large and to apply Platts methodology principles of transparency,     the size of trades and delivery terms.
                                                                              repeatability and time sensitivity. Platts considers data for assessment of
Platts steel and ferrous scrap price assessments are timestamped;             any market where a single company provides more than half of all available      Normalization for time may be done by analyzing movement in a related
the time and location are noted below unless otherwise stated in the          information to be one where such a company provides a significant               market observed through time, and that movement may provide a basis by
specification in Part VII                                                     proportion of data. For consideration in the assessment process Platts will     which to align market value of an earlier reported bid, offer or transaction
                                                                              seek to verify that the value reflects broad market value.                      to market value at the MOC close. This alignment for time is essential
Asia:      Singapore/Shanghai 4:30 pm                                                                                                                         to ensure that Platts price assessments reflect the prevailing value of a
                                                                                                                                                              market at the close of the MOC process.
                                                                                   NORMALIZATION PRICE ADJUSTMENT TECHNIQUES
US: Pittsburgh 3:30 pm
                                                                                                                                                                                                             PRIORITIZING DATA
Europe:    London 4:30 pm                                                     Platts seeks to align the standard specifications for the steel and
                                                                              ferrous scrap markets it assesses and the timestamps reflected in
Platts is progressively adopting MOC methodology in order to provide          its assessments with standard industry practice. However, physical              Platts assessment process considers firm bids, firm offers and
complete clarity over the precise point in time reflected in its market       commodity markets are generally heterogeneous in nature – not only              transactions that are transparent and open to any counterparty with the



                                                                                                COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                  4
METHODOLOGY AND SPECIFICATIONS GUIDE             STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




proper financial and operational resources. Bids, offers or transactions          Platts also analyzes the relationships between different products,          Judgment may be applied when analyzing transactional data to determine
that are not transparent may not be considered in the assessment                  and factors these relationships into assessments for markets where          if it meets Platts standards for publication; judgment may also be applied
process. The level of each bid or offer should stand firm in the                  transactional data falls to low levels. Finally, Platts normalizes other    when normalizing values to reflect differences in time, location, and other
marketplace long enough for any counterparty to hit the bid or lift the           available data that may be relevant to the assessment during periods        trading terms when comparing transactional data to the base standard
offer, otherwise the bid or offer may be deemed non-executable. Platts            when low amounts or no transactional data exists, including transactional   reflected in Platts assessments.
may not consider bids, offers or transactions that are the result of market       data from related markets, in the manner described above.
gapping, i.e. changes that are in excess of normal market practice.                                                                                           All such judgment is subject to review by Platts editorial management
                                                                                  Platts MOC guidelines are designed to avoid any distortion of the           for adherence to the standards published in Platts methodologies. The
Transparency underpins Platts assessment process, just as it does Platts          final price assessment and so inputs that are not verifiable tend to        following section illustrates how these guidelines work when calculating
data publishing processes, in the steel/scrap markets. When determining a         be eliminated and “one-off” or unrepeatable transaction data may be         indexes and making assessments.
final market assessment, Platts gives the greatest priority to fully verifiable   disregarded from the price assessment process.
and transparent market information. A firm bid or offer that has been                                                                                         To ensure the assessments are as robust as possible, Platts editorial
published by Platts in accord with its data publishing standards, and which       Single transactions may be a reflection of market value. However, single    systems are backed by a strong corporate structure that includes
still stands open to the marketplace at the close of the assessment process,      transactions need to be measured against the broad span of similar          managerial and compliance oversight. To ensure reporters follow Platts
will establish clear parameters for Platts final published assessments. Platts    transactions. Platts seeks to verify the repeatability of market value by   methodological guidelines in a consistent manner, Platts ensures that
will typically assess market value somewhere between the best bid, and            determining the level achieved is repeatable in the wider market.           reporters are trained and regularly assessed in their own and each other’s
best offer, open to the market at the timestamp close . This ensures that                                                                                     markets.
Platts assessments reflect the transactable value of the commodities it is        A variant on this action is price “gapping” -- when bids are made too
assessing at the close of the market.                                             high and offers are made too low through untested levels of price support   Application of professional judgment guidelines promotes consistency and
                                                                                  or resistance. Platts may not publish such bids and offers during the       transparency in judgments and is systematically applied by Platts. Where
Completed, transparent transactions that are fully published by Platts            MOC process. When transactions are concluded at levels that have not        professional judgment is exercised, all information available is critically
are important in helping establish where trading interest prevails in the         been fully tested by the market because price changes have been non         analysed and synthesised. The various possibilities are critically analysed
market, and may help determine where, in a bid/offer spread, Platts may           incremental, Platts may determine that actual market value is somewhere     and fully evaluated to reach a judgment. Platts manages and maintains
assess value for publication.                                                     between the last incremental bid and the transaction at the gapped level.   internal training guides for each of the different products assessed
                                                                                                                                                              which aim to assist assessors and ensure Platts’ price assessments are
Firm bids and offers that are available to the entire market take                                                                                             produced consistently. Platts’ price assessments are reviewed prior to
                                                                                                                   ASSESSMENT CALCULATIONS
precedence over trades that have been concluded earlier in the                                                                                                publication and exercise of professional judgment is further discussed
assessment process when establishing the value of the market,                                                                                                 and verified during this process. Finally, consistent with the concept of
particularly if bids are available at the close above previously traded           Platts publishes its assessments reflecting the currencies and units of     proportionality, assessments that are referenced by derivatives contracts
levels, or offers are available to the market below previously traded             measurement in which the products typically trade.                          are supported by assessment rational, including the application of
levels. Value is a function of time.                                                                                                                          judgment, which is published together with the price assessment offering
                                                                                  In certain cases Platts converts its assessments to other currencies or     full transparency to the market.
Similarly, firms bids and offers that are available to the entire market take     units of measurement to allow for ease of comparison or analysis in
precedence over transactional activity reported to Platts after the fact.         regional markets. Such conversions are done using published exchange        Reporters are trained to identify potentially anomalous data. We define
                                                                                  rates and conversion factors.                                               anomalous data as any information, including transactions, which is
When no bid, offer or transaction data exists, Platts may consider other                                                                                      inconsistent with or deviates from our methodology or standard market
verifiable data reported and published through the day, including fully           Platts reporters follow specific methodology when exercising editorial      conventions
and partially confirmed trades, notional trading values and other market          judgment during their assessment process. Platts editors apply judgment
information as provided for publication. Under such circumstances,                when determining (1) whether information is suitable for publication, (2)   Platts focuses primarily on assessing the value of steel/scrap in the spot
Platts may also be able to observe direct market activity or the effect of        when normalizing data and (3) when determining where to assess final        market. A spot price for a physical commodity is the value at which a
commonly traded commodities on illiquid markets via spread differentials          value of market.                                                            standard, repeatable transaction for merchantable material takes place,
and/or shipping economics.                                                                                                                                    or could take place in the open market at arms’ length. Platts spot price



                                                                                                   COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL               5
METHODOLOGY AND SPECIFICATIONS GUIDE                STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




assessments reflect the value at which transactions take place, or could         In the above example, the price may be normalized down if the buyer held       reflects McGraw Hill Financial’s commitment to integrity, honesty and
take place, at the time stamped (close of the MOC process).                      the larger-than-usual volume tolerance option and vice-versa if the seller     acting in good faith in all its dealings.
                                                                                 held that option.
                                                                                                                                                                In addition, Platts requires that all employees attest annually that they
                                  LOADING/DELIVERY LOCATION
                                                                                                                                                                do not have any personal relationships or personal financial interests
                                                                                                                GENERAL TERMS & CONDITIONS
                                                                                                                                                                that may influence or be perceived to influence or interfere with their
Platts defines base locations in its price assessments but these act as                                                                                         ability to perform their jobs in an objective, impartial and effective
a pricing basis point, and differentials may be assessed off these when          Platts assessments reflect trades in the steel market concluded                manner.
deals or bids/offers are reported on a different delivery port basis.            INCOTERMS.
                                                                                                                                                                Market reporters and editors are required to ensure adherence to
                                                                                 Where companies express bids or offers, these are understood to be on          published methodologies as well as internal standards that require
                                          FREIGHT DIFFERENTIALS
                                                                                 INCOTERMS unless otherwise stated. Platts’ use of terms such as FOB,           accurate records are kept in order to document their work.
                                                                                 CFR, CIF, ex-works and so on are based around definitions provided by the
Platts may take into account prevailing sea freight and/or logistics rate        International Chamber of Commerce which publishes the INCOTERMS.               Platts has a Quality & Risk Management (QRM) function that is
levels in establishing ex-works (EXW), FOB and/or CIF/CFR values. Where                                                                                         independent of the editorial group. QRM is responsible for ensuring
a market has become illiquid, Platts may determine the FOB value from            Definitions of such terminology are available through the following            the quality and adherence to Platts’ policies, standards, processes and
the CIF value and vice versa. Where there is limited local demand but            web link: http://www.iccwbo.org/incoterms/ Please note that the text           procedures. The QRM team conducts regular assessments of editorial
longer-range arbitrage opportunities emerge, the FOB value may rise              of INCOTERMS in whole or in part is subject to ICC’s copyright. Other          operations, including checks for adherence to published methodologies.
relative to the CIF value and may at times be assessed at parity or even         related ICC publications, in printed or electronic form, are also subject to
above the CIF value.                                                             copyright.                                                                     McGraw Hill Financial’s internal auditor, an independent group that
                                                                                                                                                                reports directly to the parent company’s board of directors, reviews the
                                                                                                                                                                Platts risk assessment programs.
                                              EMBEDDED OPTIONS                                                           CREDIT/PAYMENT TERMS


Platts overall objective is to reflect the transactable value of the commodity   Payment terms are as per standard commercial practice which is typically        PART V: CORRECTIONS
assessed. In cases where the apparent value of the commodity includes            prompt payment for ex-mill material and within up to 60 days of delivery
extra optionalities, the intrinsic value of the commodity may be masked.         for imported material. Unless otherwise stated below.                          Platts is committed to promptly correcting any material errors. When
                                                                                                                                                                corrections are made, they are limited to corrections to data that was
In such cases, Platts may use its editorial judgement to factor out such         Payment terms reflected are specified under each individual data               available when the index or assessment was calculated.
extraneous elements from the value of the commodity, or it may decide            code. Wherever greater credit is given this will be allowed for in the
not to use the bid, offer or transaction in its assessment process.              assessment process. Where a seller is prepared to discount the price for
                                                                                 prompter payment, this will also be factored into the assessment.               PART VI: REQUESTS FOR CLARIFICATIONS
Optionalities that typically mask the value of the commodity include                                                                                             OF DATA AND COMPLAINTS
loading or delivery options held by the buyer or seller, volume option           Where transactions are reported with non-standard credit terms, Platts
tolerances exercisable by the buyer or seller or quality specifications          normalizes these based on prevailing commercial interest rates and
among others.                                                                    typical credit payment terms in the industry at the time of the transaction.   Platts strives to provide critical information of the highest standards,
                                                                                                                                                                to facilitate greater transparency and efficiency in physical commodity
As an example, typical volume tolerance in steel transactions is plus or                                                                                        markets.
minus 5% of the stated order size. If a buyer or seller requests a wider          PART IV: PLATTS EDITORIAL STANDARDS
optionality of say 10% or 20% of the stated order size, that would need                                                                                         Platts customers raise questions about its methodologies and the
to be factored into the assessment, depending on which party held the            All Platts employees must adhere to the McGraw Hill Financial Code             approach taken in price assessments, proposed methodology changes and
option.                                                                          of Business Ethics (COBE), which has to be signed annually. The COBE           other editorial decisions in relation to Platts’ price assessments. Platts



                                                                                                   COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                 6
METHODOLOGY AND SPECIFICATIONS GUIDE     STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




strongly values these interactions and encourages dialogue concerning
any questions a customer or market stakeholder may have.

However, Platts recognizes that occasionally customers may not be
satisfied with responses received or the services provided by Platts and
wish to escalate matters. Full information about how to contact Platts
to request clarification around an assessment, or make a complaint, is
available on the Platts website, at: http://www.platts.com/ContactUs/
Complaints.




                                                                           COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL   7
METHODOLOGY AND SPECIFICATIONS GUIDE                          STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




 PART VII: DEFINITIONS OF THE TRADING LOCATIONS FOR WHICH PLATTS PUBLISHES INDEXES OR ASSESSMENTS
The following Steel & Ferrous Scrap specifications guide contains the primary specifications and methodologies for Platts Steel & Ferrous Scrap assessments throughout the world/region. The various components of this guide are
designed to give Platts subscribers as much information as possible about a wide range of methodology and specification issues.

This methodology is current at the time of publication. Platts may issue further updates and enhancements to this methodology and will announce these to subscribers through its usual publications of record. Such updates will be
included in the next version of the methodology. Platts editorial staff and managers will usually be ready to provide guidance when assessment issues require clarification.



 CARBON STEEL
FLAT
Assessment                              CODE      Mavg      Wavg      QUALITY                                            QUANTITY                DIMENSIONS                    LOCATION                TIMING        PAYMENT TERMS                UOM

Hot-Rolled Coil
HRC Ex-Works RUHR                       STHRE00   STHRE03             European Norm EN10025-2:2004. Grade S235JR or eq   100 mt                  W 1200-1500mm, T 2-15mm       Ex-works RUHR           6-8 weeks     Prompt Payment on delivery Euro per mt

HRC DDP North West Europe               AAWVM00   AAWVM03   AAWVM04   European Norm EN10025-2:2004. Grade S235JR or eq   Min 25 mt single load   W 1200-1500mm, T 2-15mm       DDP North West Europe 7-14 days       Net Cash 30 days             Euro per mt

HRC CIF Antwerp                         STHRA00   STHRA03             European Norm EN10025-2:2004. Grade S235JR or eq   500-5000 mt             W 1200-1500mm, T 2-15mm       CIF Antwerp             6-12 weeks    Typically at sight           Euro per mt

HRC FOB Black Sea                       STHRB00   STHRB03   STHRB04   European Norm EN10025-2:2004. Grade S235JR or eq   2000-3000 mt            W 1200-1500mm, T 2-15mm       FOB Black Sea Port      6-8 weeks     Typically at sight           US$ per mt
                                                                                                                                                 W 1200-1300mm, T 2-4mm,                                             Prompt payment on delivery
HRC CPT Moscow                          AAXJI00   AAXJI03             Russian grade St3sp/St3ps                          100 mt                                                CPT Moscow              3-5 weeks                                Rubles per mt
                                                                                                                                                 Wt 5-8 mt/coil                                                      from mill
                                                                                                                                                 W 48-60 inches, T 0.083-0.37
HRC EXW Indiana                         STHRI00   STHRI03             ASTM A 1011-06a Commercial Type B                  500 st                                               Ex-mill Indiana          3-8 weeks     Net 30 days after delivery   US$ per short ton
                                                                                                                                                 inches
                                                                                                                                                 W 48-60 inches, T 0.083-0.37
HRC CIF USGC                            STHRG00   STHRG03             ASTM A 1011-06a Commercial Type B                  1000-2000 st                                         CIF basis Houston        3-8 weeks     Net 30 days after delivery   US$ per short ton
                                                                                                                                                 inches
HRC FOB Chinese Port                    STHRZ00   STHRZ03   STHRZ02   Chinese GB/T912 grade Q235 A or equivalent         5000 mt                 W 1200-1500mm, T 3-4mm        FOB Main Chinese port   to 12 weeks   Typically at sight           US$ per mt

HRC Ex-Works S.EU                       SBO1152                       European Norm EN10025-2:2004. Grade S235JR or eq   100 mt                  W 1200-1500mm, T 2-15mm       S. Europe               6-8 weeks     Prompt Payment on delivery Euro per mt

HRC DDP NW Europe $/MT                  AAWVT00   AAWVT03   AAWVT04   European Norm EN10025-2:2004. Grade S235JR or eq   Min 25 mt single load   W 1200-1500mm, T 2-15mm       DDP North West Europe 7-14 days       Net Cash 30 days             US$ per mt
                                                                                                                                                 W 1200-1300mm, T 2-4mm,                                             Prompt payment on delivery
HRC CPT Moscow $/MT                     AAXJL00   AAXJL03             Russian grade St3sp/St3ps                          100 mt                                                CPT Moscow              3-5 weeks                                US$/mt
                                                                                                                                                 Wt 5-8 mt/coil                                                      from mill
                                                                                                                                                 W 1000 -1830mm, T
HRC DDP West Midlands, UK               STHWM04   STHWM03             European Norm EN10025-2 Grade S275JR or eq         100-1000mt                                            DDP West Midlands, UK 2 -12 weeks     Cash or at sight terms       GBP per mt
                                                                                                                                                 3-12.5mm
HRC Europe Imp CIF S Euro Port Mthly    SB01143                       European Norm EN10025-2:2004. Grade S235JR or eq   Min 500mt               W 1200-1500mm, T 2-15mm       CIF S.Europe            6-12 weeks    Typically at sight           Euro per mt
HRC Mid East Imp CFR Persian Gulf
                                        SB01146                       European Norm EN10025-2:2004. Grade S235JR or eq   500mt                   W 1200-1500mm, T 2-15mm       CFR Dubai               4-8 weeks     Typically at sight           US$ per mt
Port Mthly
HRC Russia Black Sea Exp FOB Mthly      SB01151                       European Norm EN10025-2:2004. Grade S235JR or eq   2,000-3,000mt           W 1200-1500mm, T 2-15mm       FOB Russia Black Sea    6-8 weeks     Typically at sight           US$ per mt

HRC Turkey Dom Prod Ex-Works Wkly       SB01154                       European Norm EN10025-2:2004. Grade S235JR or eq   100mt                   W 1200-1500mm, T 2-15mm       Turkey Ex-works         6-8 weeks     Prompt Payment on delivery US$ per mt

HRC Turkey Exp FOB Wkly                 SB01155                       European Norm EN10025-2:2004. Grade S235JR or eq   500mt                   W 1200-1500mm, T 2-15mm       Turkey FOB              8-10 weeks    Typically at sight           US$ per mt

HRC Turkey Imp CFR Turkish Port Mthly   SB01156                       European Norm EN10025-2:2004. Grade S235JR or eq   500mt                   W 1200-1500mm, T 2-15mm       Turkey CFR              6-8 weeks     Prompt Payment on delivery US$ per mt



                                                                                                         COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                          8
METHODOLOGY AND SPECIFICATIONS GUIDE                    STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




FLAT CONTINUED
Assessment                                CODE      Mavg      Wavg   QUALITY                                            QUANTITY          DIMENSIONS                    LOCATION                TIMING        PAYMENT TERMS                 UOM

CbnStl HRC CIF Antwerp US$/St             STHAD00   STHAD03          European Norm EN10025-2:2004. Grade S235JR or eq   500-5000 mt       W 1200-1500mm, T 2-15mm       CIF Antwerp             6-12 weeks    Typically at sight            US$ per st

CbnStl HRC CIF Antwerp US$/CWt            STHAH00   STHAH03          European Norm EN10025-2:2004. Grade S235JR or eq   500-5000 mt       W 1200-1500mm, T 2-15mm       CIF Antwerp             6-12 weeks    Typically at sight            US$ per CWT

CbnStl HRC CIF Antwerp US$/Mt             STHAM00   STHAM03          European Norm EN10025-2:2004. Grade S235JR or eq   500-5000 mt       W 1200-1500mm, T 2-15mm       CIF Antwerp             6-12 weeks    Typically at sight            US$ per mt

CbnStl HRC FOB Blk Sea US$/St             STHBD00   STHBD03          European Norm EN10025-2:2004. Grade S235JR or eq   2000-3000 mt      W 1200-1500mm, T 2-15mm       FOB Black Sea Port      6-8 weeks     Typically at sight            US$ per st

CbnStl HRC FOB Blk Sea Eur/Mt             STHBE00   STHBE03          European Norm EN10025-2:2004. Grade S235JR or eq   2000-3000 mt      W 1200-1500mm, T 2-15mm       FOB Black Sea Port      6-8 weeks     Typically at sight            Euro per mt

CbnStl HRC FOB Blk Sea US$/CWt            STHBH00   STHBH03          European Norm EN10025-2:2004. Grade S235JR or eq   2000-3000 mt      W 1200-1500mm, T 2-15mm       FOB Black Sea Port      6-8 weeks     Typically at sight            US$ per CWT

CbnStl HRC xWk Ruhr US$/St                STHRD00   STHRD03          European Norm EN10025-2:2004. Grade S235JR or eq   100 mt            W 1200-1500mm, T 2-15mm       Ex-works RUHR           6-8 weeks     Prompt Payment on delivery US$ per st

CbnStl HRC xWk Ruhr US$/Mt                STHRM00   STHRM03          European Norm EN10025-2:2004. Grade S235JR or eq   101 mt            W 1200-1500mm, T 2-15mm       Ex-works RUHR           6-8 weeks     Prompt Payment on delivery US$ per mt
                                                                                                                                          W 1080-1128 mm, T 3-7.93                                            Net 15-30 days after          US$ per metric
HRC Argentina Dom Prod Dlvd Mthly         SB01137                    IRAM-IAS U 500-04                                  1000-2000 mt                                    Ex-works Santa Fe       6-12 weeks
                                                                                                                                          mm                                                                  delivery                      ton
HRC Brazil Dom Prod Ex-Works Incl 18%
                                                                                                                                                                                                                                            Real per metric
ICMS Tax, 9.25% Pis/Cofins and 5% IPI     SB01138                    ASTM A36                                           1000-2000 mt      W 1080-1128 mm, T 2-3 mm      Ex-works SE             3-6 weeks     Net 30 days after delivery
                                                                                                                                                                                                                                            ton
taxes Mthly
                                                                                                                                                                                                                                            US$ per metric
HRC Brazil Exp FOB Brazilian Port Mthly   SB01139                    ASTM A 1011-06a Commercial Type B                  1000-2000 mt      W 1200-1300 mm, T 2-4mm       FOB Brazilian ports     4-8 weeks     At Sight
                                                                                                                                                                                                                                            ton
                                                                                                                                                                                                                                            US$ per metric
HRC Mexico Dom Prod Dlvd Mthly            SB01145                    DIN EN 10111 DD 12 grade                           1000-2000 mt      W 1080-1128 mm, T 5-7 mm      Ex-works NE             2-3 weeks     Net 30 days after delivery
                                                                                                                                                                                                                                            ton
                                                                                                                                          W 48-72 inches, T 0.083-0.37
CbnStl HRC CIF USGC Eur/Mt                STHGE00   STHGE03          ASTM A 1011-06a Commercial Type B                  1000-2000 st                                   CIF basis Houston        3-8 weeks     Net 30 days after delivery    Eur/Mt
                                                                                                                                          inches
                                                                                                                                          W 48-72 inches, T 0.083-0.37
CbnStl HRC CIF USGC US$/CWt               STHGH00   STHGH03          ASTM A 1011-06a Commercial Type B                  1000-2000 st                                   CIF basis Houston        3-8 weeks     Net 30 days after delivery    US$/CWt
                                                                                                                                          inches
                                                                                                                                          W 48-72 inches, T 0.083-0.37
CbnStl HRC CIF USGC US$/Mt                STHGM00   STHGM03          ASTM A 1011-06a Commercial Type B                  1000-2000 st                                   CIF basis Houston        3-8 weeks     Net 30 days after delivery    US$/Mt
                                                                                                                                          inches
                                                                                                                                          W 48-72 inches, T 0.083-0.37
CbnStl HRC xWk Indiana Eur/Mt             STHIE00   STHIE03          ASTM A 1011-06a Commercial Type B                  up to 500 st                                   Ex-mill Indiana          3-8 weeks     Net 30 days after delivery    Eur/Mt
                                                                                                                                          inches
                                                                                                                                          W 48-72 inches, T 0.083-0.37
CbnStl HRC xWk Indiana US$/CWt            STHIH00   STHIH03          ASTM A 1011-06a Commercial Type B                  up to 500 st                                   Ex-mill Indiana          3-8 weeks     Net 30 days after delivery    US$/CWt
                                                                                                                                          inches
                                                                                                                                          W 48-72 inches, T 0.083-0.37
CbnStl HRC xWk Indiana US$/Mt             STHIM00   STHIM03          ASTM A 1011-06a Commercial Type B                  up to 500 st                                   Ex-mill Indiana          3-8 weeks     Net 30 days after delivery    US$/Mt
                                                                                                                                          inches
                                                                                                                                          W 48-72 inches, T 0.083-0.37
HRC CIF USGC                              STHRG00   STHRG03          ASTM A 1011-06a Commercial Type B                  1000-2000 st                                   CIF basis Houston        3-8 weeks     Net 30 days after delivery    US$ per short ton
                                                                                                                                          inches
                                                                                                                                          W 48-72 inches, T 0.083-0.37
HRC EXW Indiana                           STHRI00   STHRI03          ASTM A 1011-06a Commercial Type B                  up to 500 st                                   Ex-mill Indiana          3-8 weeks     Net 30 days after delivery    US$ per short ton
                                                                                                                                          inches
                                                                                                                                          Width 1200-1500mm;            CFR Ho Chi Minh City,                 Typically at sight via bank
HRC E Asia Imp CFR Wkly                   SB01142                    SS400 or equivalent                                3000 mt minimum                                                         8-12 weeks                                  US$ per mt
                                                                                                                                          Thickness 3mm                 Vietnam                               system
HRC Q235 5.5MM China Dom Prod
                                          SB01150                    Q235                                               50-500 mt         W 1,250mm, T 5.5mm            Ex-stock Shanghai       up to 1 week Cash before delivery           Yuan/mt
Guangdong Lecong Incl 17%Vat Wkly
HRC Q235 5.5MM China Dom Prod
                                          SB01260                    Q335                                               50-500 mt         W 1,250mm, T 5.5mm            Ex-stock Lecong         up to 1 week Cash before delivery           Yuan/mt
Shanghai Incl 17%Vat




                                                                                                      COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                      9
METHODOLOGY AND SPECIFICATIONS GUIDE                    STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




FLAT CONTINUED
Assessment                                CODE      Mavg      Wavg      QUALITY                                            QUANTITY             DIMENSIONS                   LOCATION              TIMING       PAYMENT TERMS                 UOM

                                                                                                                                                W 1200-1500mm, T2-4mm,                                          Prompt payment on delivery
HR Sheet CPT Moscow                       AAXJH00   AAXJH03             Russian grade St3sp/St3ps                          100 mt                                            CPT Moscow            3-5 weeks                               Rubles per mt
                                                                                                                                                L2500-6000mm                                                    from mill
                                                                                                                                                W 1200-1500mm, T2-4mm,                                          Prompt payment on delivery
HR Sheet CPT Moscow $/MT                  AAXJK00   AAXJK03             Russian grade St3sp/St3ps                          101 mt                                            CPT Moscow            3-5 weeks                               US$ per mt
                                                                                                                                                L2500-6000mm                                                    from mill


Cold-Rolled Coil
                                                                                                                                                                                                                 Prompt payment on delivery
CRC Ex-Works RUHR                         STRRE00   STRRE03   STRRE04    European Norm EN10131:2006. Grade: DC01 or eq      100 mt              W 1000-1250mm, T 0.7-3.0mm Ex-works RUHR           6-8 weeks                                Euro per mt
                                                                                                                                                                                                                 from mill
CRC DP North West Europe                  AAWWB00   AAWWB03   AAWWB04    European Norm EN10131:2006. Grade: DC01 or eq      Min 25 mt single load W 1000-1250mm, T 0.7-3.0mm DDP North West Europe 7-14 days     Net cash 30 days             Euro per mt

CRC CIF Antwerp                           STRRA00   STRRA03   STRRA04    European Norm EN10131:2006. Grade: DC01            500-5000 mt         W 1000-1250mm, T 0.7-3.0mm CIF Antwerp             6-8 weeks     Typically at sight           Euro per mt

CRC FOB Black Sea                         STRRB00   STRRB03   STRRB04    European Norm EN10131:2006. Grade: DC01 or eq      500-5000 mt         W 1000-1250mm, T 0.7-3.0mm FOB Black Sea Port      3-8 weeks     Typically at sight           US$ per mt
                                                                                                                                                W 48-72 inches, T 0.0272-
CRC EXW Indiana                           STRRI00   STRRI03   STRRI04    AISI grades C1005 to C1008                         up to 500 st                                     Ex-works Indiana      4-12 weeks    Net 30 days after delivery   US$ per short ton
                                                                                                                                                0.1000 inches
                                                                                                                                                W 48-72 inches, T 0.0272-
CRC CIF Houston                           STRRG00   STRRG03   STRRG04    AISI grades C1005 to C1008                         1000 st                                          CIF Houston           4-12 weeks    Net 30 days after delivery   US$ per short ton
                                                                                                                                                0.1000 inches
CRC Ex-works S. EU                        SB01091                                                                           100 MT                                           S Europe              6-8 weeks                                  Euro per mt

CRC DDP NW Europe $/MT                    AAWWC00   AAWWC03   AAWWC04    European Norm EN10131:2006. Grade: DC01 or eq      Min 25 mt single load W 1000-1250mm, T 0.7-3.0mm DDP North West Europe 7-14 days     Net cash 30 days             US$ per mt

CRC Europe Imp CIF S Euro Port Mthly      SB01085                        European Norm EN10131:2006. Grade: DC01 or eq      Min 500mt           W 1000-1250mm, T 3-4mm       Cif S.Europe          6-12 weeks    Typically at sight           Euro per mt

CRC Russia Black Sea Exp FOB Mthly        SB01090                        European Norm EN10131:2006. Grade: DC01 or eq      Min 500mt           W 1000-1250mm, T 0.7-3.0mm FOB Russia Black Sea    6-8 weeks     Typically at sight           US$ per mt
                                                                                                                                                                                                                 Prompt payment on delivery
CRC Turkey Dom Prod Ex-Works Mthly        SB01092                        European Norm EN10131:2006. Grade: DC01 or eq      100 mt              W 1000-1250mm, T 3-4mm       Ex-Works Turkey       6-8 weeks                                US$ per mt
                                                                                                                                                                                                                 from mill
CRC Turkey Imp CFR Turkish Port Mthly     SB01093                        European Norm EN10131:2006. Grade: DC01 or eq      500mt               W 1000-1250mm, T 3-4mm       CIF Turkey            6-8 weeks     Typically at sight           US$ per mt

CRC CIF Antwerp US$/St Dly                STRAD00   STRAD03   STRAD04    European Norm EN10131:2006. Grade: DC01            500-5000 mt         W 1000-1250mm, T 0.7-3.0mm CIF Antwerp             6-8 weeks     Typically at sight           US$ per st

CRC CIF Antwerp US$/CWt Dly               STRAH00   STRAH03   STRAH04    European Norm EN10131:2006. Grade: DC02            500-5000 mt         W 1000-1250mm, T 0.7-3.0mm CIF Antwerp             6-8 weeks     Typically at sight           US$ per CWT

CRC CIF Antwerp US$/Mt Dly                STRAM00   STRAM03   STRAM04    European Norm EN10131:2006. Grade: DC03            500-5000 mt         W 1000-1250mm, T 0.7-3.0mm CIF Antwerp             6-8 weeks     Typically at sight           US$ per MT

CRC FOB Blk Sea US$/St Dly                STRBD00   STRBD03   STRBD04    European Norm EN10131:2006. Grade: DC01 or eq      500-5000 mt         W 1000-1250mm, T 0.7-3.0mm FOB Black Sea Port      3-8 weeks     Typically at sight           US$ per st

CRC FOB Blk Sea Eur/Mt Dly                STRBE00   STRBE03   STRBE04    European Norm EN10131:2006. Grade: DC01 or eq      500-5000 mt         W 1000-1250mm, T 0.7-3.0mm FOB Black Sea Port      3-8 weeks     Typically at sight           Euro per mt

CRC FOB Blk Sea US$/CWt Dly               STRBH00   STRBH03   STRBH04    European Norm EN10131:2006. Grade: DC01 or eq      500-5000 mt         W 1000-1250mm, T 0.7-3.0mm FOB Black Sea Port      3-8 weeks     Typically at sight           US$ per CWT
                                                                                                                                                W 1080-1128 mm, T 0.7-1.73                                       Net 15-30 days after         US$ per metric
CRC Argentina Dom Prod Dlvd Mthly         SB01079                        IRAM-IAS U 500-05                                  1000 mt                                          Ex-works Santa Fe     6-12 weeks
                                                                                                                                                mm                                                               delivery                     ton
CRC Brazil Dom Prod Ex-Works Incl 18%
                                                                                                                                                W 1000-1300 mm, T 0.8-1.5                                                                     Real per metric
ICMS Tax, 9.25% Pis/Cofins and 5% IPI SB01080                            NBR 6658                                           1000-2000 mt                                     Ex-works SE           3-6 weeks     Net 30 days after delivery
                                                                                                                                                mm                                                                                            ton
taxes Mthly
                                                                                                                                                W 1000-1300 mm, T 0.8-1.5                                                                     US$ per metric
CRC Brazil Exp FOB Brazilian Port Mthly   SB01081                        NBR 6658                                           1000-3000 mt                                     FOB Brazilian ports   4-8 weeks     At sight
                                                                                                                                                mm                                                                                            ton




                                                                                                         COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                       10
METHODOLOGY AND SPECIFICATIONS GUIDE                         STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




FLAT CONTINUED
Assessment                              CODE      Mavg       Wavg      QUALITY                                                QUANTITY              DIMENSIONS                    LOCATION                    TIMING        PAYMENT TERMS                   UOM

                                                                                                                                                    W 1000-1300 mm, T 1.0-3.0                                                                               US$ per metric
CRC Mexico Dom Prod Dlvd Mthly          SB01086                         ASTM A606                                             1000-2000 mt                                         Ex-works NE                2-3 weeks      Net 30 days after delivery
                                                                                                                                                    mm                                                                                                      ton
                                                                                                                                                    W 48-72 inches, T 0.0272-
CRC CIF USGC Eur/Mt Dly                 STRGE00    STRGE03   STRGE04    AISI grades C1005 to C1008                            1000 st                                              CIF Houston                4-12 weeks     Net 30 days after delivery     US$ per short ton
                                                                                                                                                    0.1000 inches
                                                                                                                                                    W 48-72 inches, T 0.0272-
CRC CIF USGC US$/CWt Dly                STRGH00    STRGH03   STRGH04    AISI grades C1005 to C1008                            1000 st                                              CIF Houston                4-12 weeks     Net 30 days after delivery     US$ per short ton
                                                                                                                                                    0.1000 inches
                                                                                                                                                    W 48-72 inches, T 0.0272-
CRC CIF USGC US$/Mt Dly                 STRGM00    STRGM03   STRGM04    AISI grades C1005 to C1008                            1000 st                                              CIF Houston                4-12 weeks     Net 30 days after delivery     US$ per short ton
                                                                                                                                                    0.1000 inches
                                                                                                                                                    W 48-72 inches, T 0.0272-
CRC EXW Indiana Eur/Mt Dly              STRIE00    STRIE03   STRIE04    AISI grades C1005 to C1008                            up to 500 st                                         Ex-works Indiana           4-12 weeks     Net 30 days after delivery     US$ per short ton
                                                                                                                                                    0.1000 inches
                                                                                                                                                    W 48-72 inches, T 0.0272-
CRC EXW Indiana US$/CWt Dly             STRIH00    STRIH03   STRIH04    AISI grades C1005 to C1008                            up to 500 st                                         Ex-works Indiana           4-12 weeks     Net 30 days after delivery     US$ per short ton
                                                                                                                                                    0.1000 inches
                                                                                                                                                    W 48-72 inches, T 0.0272-
CRC EXW Indiana US$/Mt Dly              STRIM00    STRIM03   STRIM04    AISI grades C1005 to C1008                            up to 500 st                                         Ex-works Indiana           4-12 weeks     Net 30 days after delivery     US$ per short ton
                                                                                                                                                    0.1000 inches
CRC China Dom Prod Shanghai Incl
                                        SB01082                         SPCC                                                  50-500 mt             W 1,250mm, T 1mm               Ex-stock Shanghai          up to 1 week Cash before delivery             Yuan/mt
17%Vat Wkly
CRC China Exp FOB Shanghai Wkly         SB01083                         SPCC                                                  2,000 mt+             W 1,250mm, T 1mm               FOB Shanghai               to 12 weeks    Typically at sight             US$ per mt
                                                                                                                                                    Width 900-1250mm; Thickness                                              Typically at sight via bank
CRC E Asia Imp CFR Mthly                SB01084                         JIS G 3141, SPCC annealed or equivalent               1000 mt minimum                                   CFR East Asia                 8-12 weeks                                    US$ per mt
                                                                                                                                                    1 mm base                                                                system.
                                                                                                                                                                                                                             Prompt payment on delivery
CRC EXW Ruhr US$/St Dly                 STRRD00    STRRD03   STRRD04    European Norm EN10131:2006. Grade: DC01 or eq         100 mt                W 1000-1250mm, T 0.7-3.0mm Ex-works RUHR                  6-8 weeks                                 US$ per st
                                                                                                                                                                                                                             from mill
                                                                                                                                                                                                                             Prompt payment on delivery
CRC EXW Ruhr US$/CWt Dly                STRRH00    STRRH03   STRRH04    European Norm EN10131:2006. Grade: DC01 or eq         101 mt                W 1000-1250mm, T 0.7-3.0mm Ex-works RUHR                  6-8 weeks                                 US$ per CWT
                                                                                                                                                                                                                             from mill
                                                                                                                                                                                                                             Prompt payment on delivery
CRC EXW Ruhr US$/Mt Dly                 STRRM00    STRRM03   STRRM04    European Norm EN10131:2006. Grade: DC01 or eq         102 mt                W 1000-1250mm, T 0.7-3.0mm Ex-works RUHR                  6-8 weeks                                 US$ per MT
                                                                                                                                                                                                                             from mill



Coated
HDG Europe Imp CIF S Euro Port Mthly              SB01121                        Z275                                         500mt             Below 1mm Thickness             S.EU CIF          6-12 weeks     Typically at sight                        Euro per mt

HDG Mid East Imp CFR Persian Gulf Port Mthly      SB01122                        Z275                                         500mt             Below 1mm Thickness             CFR Dubai         4-8 weeks      Typically at sight                        US$ per mt

HDG N Europe Dom Prod Ex-Works Base Price Mthly SB01125                          Z275                                         100mt             Over 1mm Thickness              N.EU Ex-works     6-8 weeks      Prompt payment on delivery from mill      Euro per mt

HDG S Europe Dom Prod Ex-Works Base Price Mthly SB01126                          Z275                                         100mt             Over 1mm Thickness              S.EU Ex-works     6-8 weeks      Prompt payment on delivery from mill      Euro per mt

HDG Turkey Dom Prod Ex-Works Mthly                SB01127                        Z275                                         100mt             Over 1mm Thickness              Turkey Ex-works 6-8 weeks        Typically at sight                        US$ per mt

HDG Turkey Imp CFR Turkish Port Mthly             SB01128                        Z275                                         500mt             Over 1mm Thickness              Turkey CFR        6-8 weeks      Typically at sight                        US$ per mt
                                                                                 ASTM A 653 CS Type B (or equivalent), G 90   100 short tons    16 G minimum (0.06" minimum)    Ex-works
HDG EXW Indiana $/St                              HDGIM00 HDGIM03 HDGIM04                                                                                                                         4-12 weeks     Net 30 days after delivery                US$ per short ton
                                                                                 normal spangle                               minimum           Width: 48-72"                   Midwest
HDG Brazil Dom Prod Ex-Works Incl 18% ICMS Tax,
                                                  SB01117                        ASTM A653                                    1000-2000 mt      W 1000-1300 mm, T 0.4-2.0 mm Ex-works SE          3-6 weeks      Net 30 days after delivery                Real per metric ton
9.25% Pis/Cofins and 5% IPI taxes Mthly
                                                                                 ASTM A 653 CS Type B (or equivalent), G 90   100 short tons    16 G minimum (0.06" minimum)    Ex-works
HDG N Amer Dom Prod Ex-Mill US MW Mthly           SB01123                                                                                                                                         4-12 weeks     Net 30 days after delivery                US$ per short ton
                                                                                 normal spangle                               minimum           Width: 48-72"                   Midwest




                                                                                                           COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                           11
METHODOLOGY AND SPECIFICATIONS GUIDE                          STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




FLAT CONTINUED
Assessment                                      CODE         Mavg   Wavg        QUALITY                                           QUANTITY              DIMENSIONS                         LOCATION                TIMING        PAYMENT TERMS          UOM

                                                                                ASTM A 653 CS Type B (or equivalent), G 90                     16 G minimum (0.06" minimum)     CFR Houston/
HDG N Amer Imp CFR Gulf Port Mthly                 SB01124                                                                                                                                                                                              US$ per short ton
                                                                                normal spangle                                                 Width: 48-72"                    Gulf Port
                                                                                                                                                                                Ex-stock
HDG China Dom Prod Shanghai Incl 17%Vat Mthly      SB01118                      SGCC                                          50-500 mt        W 1,250mm, T 1mm                                   up to 1 week Cash before delivery                     Yuan/mt
                                                                                                                                                                                Shanghai
HDG China Exp FOB Shanghai Mthly                   SB01119                      SGCC                                          2,000 mt+        W 1,250mm, T 1mm                 FOB Shanghai      to 12 weeks Typically at sight                        US$ per mt
                                                                                                                              1,000 mt         Width: 1,250 mm, Thickness:
HDG E Asia Imp CFR Mthly                           SB01120                      SGCC                                                                                            CFR East Asia     8-12 weeks    Typically at sight via bank system.     US$ per mt
                                                                                                                              minimum          1 mm
Pre-Painted 9002 0.5MM Turkey Dom Prod Ex-Works
                                                SB01188                         9002                                          100mt            0.5mm Thickness                  Turkey Ex-works 6-8 weeks       Typically at sight                      US$ per mt
Mthly


Plate
CIF Antwerp                                        STPRA00    STPRA03 STPRA04     EN10025 S235 JR               500-5000 mt    15-40mm up to 2500 width and 12000mm length CIF Antwerp             8-16 weeks           Typically at sight            Euro per mt

EXW RUHR                                           STPRE00    STPRE03 STPRE04     EN10025 S235 JR               100 mt         15-40mm up to 2500 width and 12000mm length EXW RUHR                8-16 weeks           60 days after delivery        Euro per mt

HRP EXW US SE                                      STPRI00    STPRI03 STPRI04     ASTM A36/A36M                 5 st and above W to 96 inches, T 0.375-2 inches, L to 240 inches EX-works US SE    4-12 weeks           Net 30 days after delivery    US$ per short ton

HRP CIF US Gulf                                    STPRG00    STPRG03 STPRG04     ASTM A36/A36M                 1000 st        W to 96 inches, T 0.375-2 inches, L to 240 inches CIF Houston       4-12 weeks           Net 30 days after delivery    US$ per short ton
                                                                                                                                                                                                                        Prompt payment on delivery
Plate Ex-works S. EU                               SB01185                        EN10025 S235 JR               100 MT         15-40mm up to 2500 width and 12000mm length S Europe                6-8 weeks                                       Euro per mt
                                                                                                                                                                                                                        from mill
Plate CIS Exp FOB Mthly                            SB01179                        EN10025 S235 JR                              15-40mm up to 2500 width and 12000mm length Fob CIS                 8-16 weeks           Typically at sight            US$ per mt

Plate Europe Imp CIF S Euro Port Mthly             SB01182                        EN10025 S235 JR               500mt          15-40mm up to 2500 width and 12000mm length CIF S.EU                6-12 weeks           Typically at sight            Euro per mt
                                                                                                                                                                                                                        Prompt payment on delivery
Plate Turkey Dom Prod Ex-Works Mthly               SB01186                        EN10025 S235 JR               100mt          15-40mm up to 2500 width and 12000mm length Turkey Ex-works         6-12 weeks                                      US$ per mt
                                                                                                                                                                                                                        from mill
Plate Turkey Imp CFR Turkish Port Mthly            SB01187                        EN10025 S235 JR               500mt          15-40mm up to 2500 width and 12000mm length CFR turkey              6-12 weeks           Typically at sight            US$ per mt

StlPlt CIF Antwerp US$/St Dly                      STPAD00    STPAD03 STPAD04     EN10025 S235 JR               500-5000 mt    15-40mm up to 2500 width and 12000mm length CIF Antwerp             8-16 weeks           Typically at sight            US$ per st

StlPlt CIF Antwerp US$/CWt Dly                     STPAH00    STPAH03 STPAH04     EN10025 S235 JR               500-5000 mt    15-40mm up to 2500 width and 12000mm length CIF Antwerp             8-16 weeks           Typically at sight            US$ per CWT

StlPlt CIF Antwerp US$/Mt Dly                      STPAM00    STPAM03 STPAM04     EN10025 S235 JR               500-5000 mt    15-40mm up to 2500 width and 12000mm length CIF Antwerp             8-16 weeks           Typically at sight            US$ per MT

StlPlt EXW Ruhr US$/St Dly                         STPRD00    STPRD03 STPRD04     EN10025 S235 JR               100 mt         15-40mm up to 2500 width and 12000mm length EXW RUHR                8-16 weeks           60 days after delivery        US$ per st

StlPlt EXW Ruhr US$/CWt Dly                        STPRH00    STPRH03 STPRH04     EN10025 S235 JR               101 mt         15-40mm up to 2500 width and 12000mm length EXW RUHR                8-16 weeks           61 days after delivery        US$ per CWT

StlPlt EXW Ruhr US$/Mt Dly                         STPRM00    STPRM03 STPRM04     EN10025 S235 JR               102 mt         15-40mm up to 2500 width and 12000mm length EXW RUHR                8-16 weeks           62 days after delivery        US$ per MT
Plate A36 Brazil Dom Prod Ex-Works Incl 18% ICMS
                                                   SB01175                        ASTM A36                      1000 mt        w to 1128 mm, T 20.00-40.00 mm                   Ex-works SE        3-6 weeks            Net 30 days after delivery    Real per metric ton
Tax, 9.25% Pis/Cofins and 5% IPI taxes Mthly
StlPlt CIF USGC Eur/Mt Dly                         STPGE00    STPGE03 STPGE04     ASTM A36/A36M                 1000 st        W to 96 inches, T 0.375-2 inches, L to 240 inches CIF Houston       4-12 weeks           Net 30 days after delivery    Eur/Mt Dly

StlPlt CIF USGC US$/CWt Dly                        STPGH00    STPGH03 STPGH04     ASTM A36/A36M                 1000 st        W to 96 inches, T 0.375-2 inches, L to 240 inches CIF Houston       4-12 weeks           Net 30 days after delivery    US$/CWt

StlPlt CIF USGC US$/Mt Dly                         STPGM00    STPGM03 STPGM04     ASTM A36/A36M                 1000 st        W to 96 inches, T 0.375-2 inches, L to 240 inches CIF Houston       4-12 weeks           Net 30 days after delivery    US$/Mt




                                                                                                          COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                             12
METHODOLOGY AND SPECIFICATIONS GUIDE                        STEEL, FERROUS SCRAP, FERROALLOYS AND NOBLE ALLOYS: FEBRUARY 2015




FLAT CONTINUED
Assessment                                        CODE    Mavg      Wavg        QUALITY                                       QUANTITY              DIMENSIONS                        LOCATION               TIMING      PAYMENT TERMS           UOM

StlPlt EXW US S'East Eur/Mt Dly                     STPIE00   STPIE03 STPIE04    ASTM A36/A36M              5 st and above W to 96 inches, T 0.375-2 inches, L to 240 inches EX-works US SE   4-12 weeks         Net 30 days after delivery    Eur/Mt

StlPlt EXW US S'East US$/CWt Dly                    STPIH00   STPIH03 STPIH04    ASTM A36/A36M              5 st and above W to 96 inches, T 0.375-2 inches, L to 240 inches EX-works US SE   4-12 weeks         Net 30 days after delivery    US$/CWt

StlPlt EXW US S'East US$/Mt Dly                     STPIM00   STPIM03 STPIM04    ASTM A36/A36M              5 st and above W to 96 inches, T 0.375-2 inches, L to 240 inches EX-works US SE   4-12 weeks         Net 30 days after delivery    US$/Mt
                                                                                 ASTM A36,Q235 or JIS       3,000 mt                                                                                             Typically at sight via bank
Plate A36 E Asia Imp CFR Mthly                      SB01176                                                                Width 1,200-2,500 mm; Thickness 12-25 mm.       CFR East Asia      8-12 weeks                                       US$ per mt
                                                                                 SS400 or EN 235 JR         minimum                                                                                              system.
Plate China Dom Prod Shanghai Incl 17%Vat Mthly     SB01178                      Q235                       up to 500 mt   W 2,700-4,200mm, T 12-20mm                      Ex-stock Shanghai early prompt month Cash before delivery           Yuan/mt

Plate Commercial Grd China Exp FOB Shanghai Mthly SB01180                        Q335                       up to 500 mt   W 2,700-4,200mm, T 12-20mm                      FOB Shanghai       1-2 months         Cash                          US$ per mt


                                                                     FLAT           AAXJIOO HRC CPT MOSCOW: Prime Hot Rolled Steel Coils of new                               and Southeast Asian ports, normalized to the clarified specifications.
                                                                                    manufacture, chemical and mechanical tolerances will be based on                          Normalization for quality and size will be done based on current premiums
                                                                                    Russian grade St3sp/St3ps. Other specifications will be normalized back                   and discounts applied by the market, and that for location will utilize
Hot-Rolled Coil                                                                     to this grade using current market extras typically applied in the industry.              freight netback and net forward calculations. Information about known
                                                                                                                                                                              tariff and non-tariff barriers in the various jurisdictions will also be used
STHRE00 HRC ex-works Ruhr: Prime Hot Rolled Steel Coils of new                      STHR100 HRC EXW Indiana: Chemical and dimensional tolerances will                         in the normalization process.
manufacture, chemical and mechanical tolerances will be based on                    be based on ASTM A 1011-06a Commercial Type B. Other specifications
European Norm EN10025-2:2004. Grade: S235JR or equivalent. Other                    of HRC will be normalized back to this grade based on prevailing market                   SYMBLXX HRC DDP West Midlands, UK: Prime Hot Rolled Steel
specifications of HRC will be normalized back to this grade using current           extras.                                                                                   Coils of new manufacture, capturing imported and domestically
market extras typically applied in the industry.                                                                                                                              produced materials as well as port stocks. Chemical and mechanical
                                                                                    STHRG00 HRC CIF USGC: Chemical and dimensional tolerances will                            tolerances based on European Norm EN10025-2:2004. Grade: S275JR or
AAWVB00 HRC DDP North West Europe: Prime Hot Rolled Steel                           be based on ASTM A 1011-06a Commercial Type B. Other specifications                       equivalent. Other specifications of HRC will be normalized back to this
Coils of new manufacture, chemical and mechanical tolerances will                   of HRC will be normalized back to this grade based on prevailing market                   grade using current market extras typically applied in the industry. The
be based on European Norm EN10025-2:2004. Grade: S235JR or                          extras.                                                                                   assessment normalizes to 3 millimeter thick and up to 1.8 meter wide
equivalent. Other specifications of HRC and sheet will be normalized                                                                                                          S275 hot rolled coil. Minimum order size is 100 mt, with a maximum
back to this grade using current market extras typically applied in the             STHRZ02 HRC FOB CHINESE PORT: Prime Hot Rolled Steel Coils of                             500 mt, and the delivery window is two to six weeks from the date of
industry.                                                                           new manufacture, chemical and mechanical tolerances will be based on                      publication. Payment terms are normalized to net-40 days, with the
                                                                                    Export specifications normalized to Chinese GB/T912 grade Q235 A or                       assessment in GBP/mt. The weekly assessment is made on Fridays or
STHRA00 HRC CIF Antwerp: Prime Hot Rolled Steel Coils of new                        equivalent. Other specifications of HRC will be normalized back to this                   closest business day (in the event of holidays), time stamped to 1630
manufacture, chemical and mechanical tolerances will be based on                    grade using current market extras typically applied in the industry.                      London time.
European Norm EN10025-2:2004. Grade: S235JR, or equivalent. Other
specifications of HRC will be normalized back to this grade using current           SB01142 HRC CFR E ASIA: Prime Hot Rolled Steel Coils of new
market extras typically applied in the industry.                                    manufacture, chemical and mechanical tolerances will be based on SS400                    Cold-Rolled Coil
                                                                                    or equivalent specifications. The assessment will reflect specifications
STHRB00 HRC FOB BLACK SEA: Prime Hot Rolled Steel Coils of new                      normalized to SS400 or equivalent coil of 3 mm thickness and 1,200-                       STRRE00 CRC ex-works Ruhr: Prime Cold Rolled Steel coil of new
manufacture, chemical and mechanical tolerances will be based on                    1,500 mm width. The location specified will be the port of Ho Chi Minh                    manufacture, chemical and mechanical tolerances will be based on
European Norm EN10025-2:2004. Grade:S235JR. or equivalent. Other                    City, Vietnam, the main destination of cargoes traded in the spot market                  European Norm EN10131:2006. Grade: DC01 or equivalent. Other
specifications of HRC will be normalized back to this grade using current           in Asia. Platts will consider for assessment deals, bids and offers for                   specifications of CRC will be normalised back to this grade using current
market extras typically applied in the industry.                                    cargoes of other qualities and sizes, and delivered into other Northeast                  market extras typically applied in the industry.



                                                                                                        COPYRIGHT © 2014 BY PLATTS, McGRAW HILL FINANCIAL                          13
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