Search
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding Fastmarkets AMM subscriptions. Please ensure you have their consent before giving us their details.

Price notice: Change to HRC index specs

May 05, 2020 | 03:57 PM | Chicago | Michael Cowden

Tags  price notice, price consultation, hot-rolled coil, HRC index, US HRC, Midwest, South, Northeast West


Fastmarkets proposes to expand the footprint of its steel hot-rolled coil (HRC) index, fob mill US to include all states east of the Rocky Mountains.

A broader footprint would provide more relevant pricing information for a market that has seen and will continue to see significant growth outside of traditional manufacturing hubs in the Midwest, most notably in the South and along the Gulf Coast. A broader footprint also would allow for a greater representation of electric-arc furnace (EAF) steelmakers, which account for most US steel production and growth, including flat-rolled products like HRC.

Fastmarkets’ current specifications for the index are as follows:
Steel hot-rolled coil index, fob mill US
Quality: 0.09-0.38-in thick x 48-72-in wide ASTM A1011 Commercial Steel and corresponding grades
Quantity: Minimum 50 tons
Location: Fob US Midwest mill. The US Midwest comprises Ohio, Indiana, Illinois, Wisconsin, Michigan, Missouri, Iowa, Minnesota, Kansas, Nebraska, South Dakota and North Dakota, according to the US Census Bureau.
Unit: US dollars per hundredweight
Publication: Daily by 5pm New York time.
Notes: Standard packaging and raw material surcharges included. Payment terms are typical commercial practice in the HRC market. Transactions conducted on different payment or credit terms will be adjusted back to the base specifications, taking into account discounts and standard commercial terms.

The proposed amended price specifications are as follows, with changes highlighted in bold:
Steel hot-rolled coil index, fob mill US
Quality: 0.09-0.38-in thick x 48-72-in wide ASTM A1011 Commercial Steel and corresponding grades
Quantity: Minimum 50 tons
Location: fob US mill, excluding Pacific states (Washington, Oregon, California, Alaska and Hawaii) as defined by the US Census Bureau.
Unit: US dollars per hundredweight
Publication: Daily by 5pm New York time.
Notes: Standard packaging, raw materials surcharges included. Payment terms are typical commercial practice in the HRC market. Transactions that are conducted on different payment or credit terms will be adjusted back to the base specifications, taking into account discounts and standard commercial terms. 

The consultation period for this proposed amendment will run from Wednesday April 15 through May 15, with changes - subject to market feedback - to take place starting May 18.

Please contact Michael Cowden at pricing@fastmarkets.com to provide feedback about this change or if you would like to submit pricing for it. Please add the subject heading “FAO: Michael Cowden re: US HRC footprint." 

To see all of Fastmarkets' pricing methodology and specification documents, please click here.


 

Latest Pricing Trends Year Over Year