PRICING NOTICE: AMM proposes HRC index
Jun 20, 2017 | 09:00 AM
AMM is proposing to switch its weekly hot-rolled coil assessment basis f.o.b. Midwest mill to an index effective July 13.
The specifications have been designed to reflect the most commonly traded spot volumes in the Midwest region and AMM has identified sufficient market liquidity in the U.S. hot-rolled coil market to justify the implementation of an index-based methodology.
The index methodology will ensure increased robustness through rigorous mathematical analysis of gathered pricing data that has already been applied successfully in many other markets by the Metal Bulletin Group.
The index, following a consultation phase ending on July 10, will be published weekly on Thursdays, or on the next working day in the event that a Thursday falls on a public holiday. The specifications under consideration for the index are as follows:
Currency and Unit: U.S. dollar per hundredweight
Basis: f.o.b. Midwest mill
Price Type: Index
Frequency: Weekly, Thursday
Minimum Tonnage: 50 tons
Gauge: 0.09 to 0.38 inch thick x 48 to 72 inches wide
Quality: ASTM A1011 Commercial Sheet and corresponding grades
Raw material surcharges: Included
The MB Group’s index methodology screens outliers and applies a tonnage-weighted model to ensure that the hot-rolled coil price is the most robust in the industry.
The group has no financial interest in the level or direction of the index.
To send any feedback regarding the proposed change, please email Thorsten Schier at email@example.com.