CRU Prices Steel Methodology and Definitions Guide

Transcription

1 CRU Prices Steel Methodology and Definitions Guide May 2016

2 B00CRU Prices Across mining, metals and fertilizers CRU s reputation with clients is for reliability, independence and authority. And whether delivered as the CRU Prices Service or as part of a product such as a Monitor or Fertilizer Week, CRU s commitment to high quality price assessment is consistent. Our insights are built on the solid foundation made by a commitment to primary research and a robust and transparent methodology. The need for exclusive, first-hand knowledge is why we have invested in a global team of analysts and price reporters. CRU s authoritative and independent work whether in forecasting, price assessment or cost analysis focuses on helping you make real business decisions. Across a comprehensive range of commodities, we strive to provide clients with the best service and closest contact flexible, personal, responsive. We base assessments on a strong and transparent methodology, with trained price assessors and expert analysts working together to ensure prices are unbiased and accurate. If you have prices embedded in contracts you can trust CRU s team and methodology to provide certainty and continuity. Our philosophy has led to widespread adoption and use of our price assessments by physical and financial market players from across the globe. Across the mining, metals and fertilizers markets we produce over 500 regular price assessments at a range of frequencies appropriate to a market: bi-weekly, weekly and monthly. CRU s US hot rolled coil price is the leading benchmark for the US steel industry, relied on by 85% of those who use a benchmark to settle contracts, according to independent market research. The CRU HRC price, often known as the cru, is more popular than the next two most providers combined. The CRU HRC price is unique in being subject to a third party audit. CRU complies with the IOSCO Guidelines for Best Practice Price Assessment CRU prices are based on regular contact with a wide network of market participants. This network is constantly reviewed and expanded to ensure a balance of buyers and sellers and actual activity in the market. In July 2014, we adopted the internationally recognised and independent IOSCO standards for price assessment. All price assessments are carried out by experienced analysts who have a rich understanding of the markets that they are covering. We treat dialogue with market participants as confidential and no details are shared with third parties. We also regularly carry out consultations with the market about its methodology to ensure that it accurately reflects the underlying commodity market and latest regulations. Independent market research of steel buyers confirms that a robust and transparent methodology is one of the main criteria for judging the robustness of a price benchmark which is why so many companies rely on CRU prices to do business. Independent market research commissioned by CRU showed that more than 80% of buyers and sellers said a methodology that is freely available and transparent was an important criteria for judging the robustness of a price benchmark. If you have any questions or general comments on any of our prices, please prices@crugroup.com. How to use CRU prices in contracts We base price assessments on a strong and transparent methodology, with trained price assessors and expert analysts working together to ensure prices are unbiased and accurate. If you have prices embedded in contracts you can trust CRU s team and methodology to provide certainty and continuity. We believe there are four main criteria for choosing a prices provider on which to base contracts: 1. Robustness and transparency of methodology 2. Experience of team of price assessors 3. Comprehensiveness of prices offered 4. Availability of an accurate historical price series. Any company that relies on CRU prices to settle contracts will want to make sure that they have an appropriate licence arranged with CRU. This is different from a standard subscription and makes sure clients are using prices in a way that is legally compliant. If you have any questions or general comments on any of our prices or to find out more about using CRU prices to settle contracts prices@crugroup.com. CRU Prices Service Methodology and Definitions Page 2 of 51

3 B CRU Prices... 1 B00CRU Prices... 2 CRU complies with the IOSCO Guidelines for Best Practice Price Assessment... 2 How to use CRU prices in contracts... 2 CRU Steel Price Assessment Methodology The CRU approach to developing steel price assessments Level 1.0 price assessments Level 1.5 price indices Level 2.0 price indices Operations manuals Become a data provider Summary North American Market Prices USA Midwest HR coil mill HR coil USA Domestic Midwest USA Midwest CR Coil mill CR coil USA Domestic Midwest USA Midwest HDG coil mill HDG coil; USA; Domestic; Midwest USA Midwest HDG coil (base) mill HDG coil USA Domestic Midwest USA Midwest HDG coil (coating extra) Hot-dipped galvanised coil coating extra USA, Midwest; EG coil, mill EG coil; USA; Domestic; Midwest USA, Midwest; Plate, mill Plate; USA; Domestic USA, Midwest; Rebar, mill Rebar; USA; Domestic; Midwest USA, Midwest; LC wire rod, mill Mesh wire rod; USA; Domestic; Midwest USA, Midwest; HC wire rod, mill HC wire rod; USA; Domestic; Midwest USA, Midwest; Merchant bar, mill M Bar; USA; Domestic; Midwest USA, Midwest; Structurals, mill Beams; USA; Domestic; Midwest USA, West Coast; HR coil, mill HR coil; USA; Domestic; West Coast USA, West Coast; CR coil, mill CR coil; USA; Domestic; West Coast USA, West Coast; HDG coil, mill HDG coil; USA; Domestic; West Coast USA, Gulf Coast; HR coil, mill HR coil; USA; Domestic; Gulf USA, Gulf Coast; CR coil, mill CR coil; USA; Domestic; Gulf USA, Gulf Coast; HDG coil, mill HDG coil; USA; Domestic; Gulf USA, Import; Slab, CFR Slab; USA; Import; CFR Gulf Coast CRU Prices Service Methodology and Definitions Page 3 of 51

4 USA, Import; Billet, CFR Billet; USA; Import; CFR Gulf Coast Central and South American Market Prices Brazil; HR coil, ex-se Brazil warehouse HR coil; Brazil; Domestic; ex-warehouse Brazil; CR coil, ex-se Brazil warehouse CR coil; Brazil; Domestic; ex-warehouse Brazil, Export; Slab, Slab; Brazil; Export; port Brazil, Export; HR coil, HR coil; Brazil; Export; port Brazil, Export; CR coil, CR coil; Brazil; Export; port Brazil, Export; Billet, Billet; Latin America; Export; port Brazil, Export; Rebar, Rebar; Brazil; Export; port Brazil, Export; LC wire rod, Mesh; Brazil; Export; port pean Market Prices Germany; HR coil, parity point HR coil; Germany; Domestic; parity point Germany; CR coil, parity point CR coil; Germany; Domestic; parity point Germany; HDG coil, parity point HDG coil; Germany; Domestic; parity point Germany; HDG coil (base), mill Hot-dipped galvanised coil base Germany; HDG coil (coating extra) Hot-dipped galvanised coil coating extra Germany; EG coil, parity point EG coil; Germany; Domestic; parity point Germany; Plate, parity point Plate; Germany; Domestic Germany; Rebar, deliv Rebar; Germany; Domestic; Germany; LC wire rod, deliv Mesh wire rod; Germany; Domestic; Germany; HC wire rod, deliv HC wire rod; Germany; Domestic; Germany; Merchant bar, deliv M Bar; Germany; Domestic; Germany; Structurals, deliv Beams; Germany; Domestic; France; HR coil, parity point HR coil; France; Domestic; parity point France; CR coil, parity point CR coil; France; Domestic; parity point France; HDG coil, parity point HDG coil; France; Domestic; parity point France; EG coil, parity point EG coil; France; Domestic; parity point France; Rebar, deliv CRU Prices Service Methodology and Definitions Page 4 of 51

5 Rebar; France; Domestic; France; LC wire rod, deliv Mesh wire rod; France; Domestic; France; HC wire rod, deliv HC wire rod; France; Domestic; France; Merchant bar, deliv M Bar; France; Domestic; France; Structurals, deliv Beams; France; Domestic; UK; HR coil, parity point HR coil; UK; Domestic; parity point UK; CR coil, parity point CR coil; UK; Domestic; parity point UK; HDG coil, parity point HDG coil; UK; Domestic; parity point UK; EG coil, parity point EG coil; UK; Domestic; parity point UK; Plate, parity point Plate; UK; Domestic; parity point UK; Rebar, deliv Rebar; UK; Domestic; UK; LC wire rod, deliv Mesh wire rod; UK; Domestic; UK; HC wire rod, deliv HC wire rod; UK; Domestic; UK; Merchant bar, deliv M Bar; UK; Domestic; UK; Structurals, deliv Beams; UK; Domestic; Italy; HR coil, parity point HR coil; Italy; Domestic; parity point Italy; CR coil, parity point CR coil; Italy; Domestic; parity point Italy; HDG coil, parity point HDG coil; Italy; Domestic; parity point USA, Midwest; HDG coil (base), mill Hot-dipped galvanised coil base USA, Midwest; HDG coil (coating extra) Hot-dipped galvanised coil coating extra Italy; EG coil, parity point EG coil; Italy; Domestic; parity point Italy; Plate, parity point Plate; Italy; Domestic Italy; Billet, deliv Billet; Italy; Domestic; Italy; Rebar, deliv Rebar; Italy; Domestic; Italy; LC wire rod, deliv Mesh wire rod; Italy; Domestic; Italy; HC wire rod, deliv HC wire rod; Italy; Domestic; Italy; Merchant bar, deliv M Bar; Italy; Domestic; CRU Prices Service Methodology and Definitions Page 5 of 51

6 Italy; Merchant bar, deliv M Bar; Italy; Domestic; Italy; Structurals, deliv Beams; Italy; Domestic; Spain; HR coil, parity point HR coil; Spain; Domestic; parity point Spain; CR coil, parity point CR coil; Spain; Domestic; parity point Spain; HDG coil, parity point HDG coil; Spain; Domestic; parity point Spain; EG coil, parity point EG coil; Spain; Domestic; parity point Spain; Rebar, deliv Rebar; Spain; Domestic; Spain; LC wire rod, deliv Mesh wire rod; Spain; Domestic; Spain; HC wire rod, deliv HC wire rod; Spain; Domestic; Spain; Merchant bar, deliv M Bar; Spain; Domestic; Spain; Structurals, deliv Beams; Spain; Domestic; pe; Slab; Export; Slab; W.pe; Export; ARA pe; HR coil; Export; HR coil; W.pe; Export; ARA pe; CR coil; Export; CR coil; W.pe; Export; ARA pe; HDG coil; Export; HDG coil; W.pe; Export; ARA pe; Plate; Export; Plate; W.pe; Export; ARA pe; Billet Export; Billet; W.pe; Export; ARA pe, Export; Rebar, Rebar; W.pe; Export; port pe, Export; LC Wire Rod, Mesh wire rod; W.pe; Export; port pe, Export; HC Wire Rod, HC wire rod; W.pe; Export; port pe; M Bar; Export; M Bar; W.pe; Export; ARA pe; Beams; Export; Beams; W.pe; Export; ARA Turkey, Export; HR coil, Hot-rolled coil; Turkey; Export Turkey, Export; CR coil, Cold-rolled coil; Turkey; Export Turkey; Billet, Billet; Turkey; Export Turkey; Rebar, Rebar; Turkey; Export; port Turkey; LC wire rod CRU Prices Service Methodology and Definitions Page 6 of 51

7 Mesh wire rod; Turkey; Export; port Turkey; M Bar; Export; M Bar; Turkey; Export; port CIS CIS, Export; Slab, Slab; CIS; Export; Black Sea CIS, Export; HR coil, HR coil; CIS; Export; Black Sea CIS, Export; CR coil, CR coil; CIS; Export; Black Sea CIS, Export; Billet, Billet; CIS; Export; Black Sea CIS, Export; Rebar, Rebar; CIS; Export; Black Sea CIS, Export; LC wire rod, Mesh wire rod; CIS; Export; Black Sea CIS; M Bar; Export; M.Bar; CIS; Export; Black Sea CIS; Beams; Export; Beams; CIS; Export; Black Sea Middle East UAE; Rebar, deliv Rebar; UAE; Domestic; Asia India, Mumbai; HR coil, deliv HR coil; India; Mumbai; India, Mumbai; CR coil, deliv CR coil; India; Mumbai; India, Mumbai; HDG coil, deliv HDG coil; India; Mumbai; India, Mumbai; Plate, deliv Reversing mill plate; India, Mumbai India, Mumbai; Rebar, deliv Rebar; India; Domestic; Mumbai India, Mumbai; LC wire rod, ex-warehouse Mesh wire rod; India; Domestic; Mumbai India, Delhi; HR coil, deliv HR coil; India; Delhi; India, Delhi; CR coil, deliv CR coil; India; Delhi; India, Delhi; HDG coil, deliv HDG coil; India; Delhi; India, Delhi; Rebar, deliv Rebar; India; Domestic; Delhi India, Delhi; LC wire rod, ex-warehouse Mesh wire rod; India; Domestic; Delhi China; HR coil, ex-shanghai warehouse HR coil; China; Domestic; ex-warehouse China; CR coil, ex-shanghai warehouse CR coil; China; Domestic; ex-warehouse China; HDG coil, ex-shanghai warehouse HDG coil; China; Domestic; ex-warehouse China; Plate, ex-shanghai warehouse CRU Prices Service Methodology and Definitions Page 7 of 51

8 Plate; China; Domestic China; Billet, ex-mill Tangshan Billet; China; Domestic; Ex-warehouse China; Rebar, ex-shanghai warehouse Rebar; China; Domestic; Ex-warehouse China; LC wire rod, ex-shanghai warehouse Mesh wire rod; China; Domestic; Ex-warehouse China; Merchant bar, ex-shanghai warehouse M Bar; China; Domestic; Ex-warehouse China; Structurals, ex-shanghai warehouse Beams; China; Domestic; Ex-warehouse China, Export; Billet, Billet; China; Export; port China, Export; Rebar, Rebar; China; Export; port China, Export; LC wire rod, Mesh wire rod; China; Export; port China, Export; Structurals, Beams; China; Export; port Far East, Import; Slab (non-cis origin), CFR Slab; Far East; Import; CFR Far East, Import; HR coil (non-cis origin), CFR HR coil; Far East; Import (non-cis); CFR Far East, Import; CR coil (non-cis origin), CFR CR coil; Far East; Import (non-cis); CFR Far East, Import; HDG coil (non-cis origin), CFR HDG coil; Far East; Import (non-cis); CFR Far East, Import; Plate (non-cis origin), CFR Plate; Far East; Import (non-cis); CFR Far East, Import; Billet (non-cis origin), CFR Billet; Far East; Import (non-cis); CFR Far East, Import; Rebar (CIS origin), CFR Rebar; Far East; Import (non-cis); CFR Far East, Import; Rebar (CIS origin), CFR Rebar; Far East; Import (non-cis); CFR Far East, Import; LC wire rod (CIS origin), CFR Mesh wire rod; Far East; Import (non-cis); CFR Far East, Import; LC wire rod (CIS origin), CFR Mesh wire rod; Far East; Import (non-cis); CFR Far East, Import; HC wire rod (non-cis origin), CFR HC wire rod; Far East; Import (non-cis); CFR Far East, Import; Merchant bar (non-cis origin), CFR M.bar; Far East; Import (non-cis); CFR Far East, Import; Structurals (non-cis origin), CFR Beams; Far East; Import (non-cis); CFR Far East, Import; HR coil (CIS origin), CFR HR coil; Far East; Import (CIS); CFR Far East, Import; CR coil (CIS origin), CFR CR coil; Far East; Import (CIS); CFR Far East, Import; HDG coil (CIS origin), CFR HDG coil; Far East; Import (CIS); CFR Far East, Import; Billet (CIS origin), CFR Billet; Far East; Import (CIS); CFR CRU Prices Service Methodology and Definitions Page 8 of 51

9 Far East, Import; Merchant bar (CIS origin), CFR M.bar; Far East; Import (CIS); CFR Far East, Import; Structurals (CIS origin), CFR Beams; Far East; Import (CIS); CFR Japan, Export; HR coil, HR coil; Japan; Export; Japan Japan, Export; CR coil, CR coil; Japan; Export; Japan Japan, Export; HDG coil, HDG coil; Japan; Export; Japan Japan, Export; Plate, Plate; Japan; Export; Japan CRU Prices Service Methodology and Definitions Page 9 of 51

10 CRU Steel Price Assessment Methodology The use of independent assessments of prices has increased dramatically in recent years. Traditionally such price assessments have been used by physical buyers and sellers as a means to benchmark their recent transactions. Whilst in some instances they are still mostly used in this way, price assessments are now increasingly being used by both the steel industry, and financial market participants in other ways. The use of independent assessments of prices has grown since 2004, particularly in the case of finished steel, reflecting the significant increase that has been observed in steel price volatility. In some markets, independent assessments of prices are now being entered into variable cost contracts ; used as the trigger points for surcharges; they are being used in the physical contracts between steel mills/service centres and their customers; and in futures contracts, such as CME s US Midwest Domestic Hot-Rolled Coil Futures Steel Contract. The CRU approach to developing steel price assessments CRU has a policy of developing its assessments of steel industry prices, both raw material and finished steel, in tandem with how they are being used by both the physical and financial communities and also with the type of price data available. This evolutionary process has so far resulted in three families of CRU price assessments. Level 1.0 price assessments Currently, the majority of CRU s price assessments are classified as Level 1.0 price assessments. The main features of CRU s Level 1.0 price assessments are the following: Data providers submit a single price, representing the average that orders have been placed at within the defined survey period usually the previous week of business (see definitions later on). Data providers share their data submissions during telephone surveys with CRU Steel Team analysts. CRU Steel Team analysts attach a weighting to each price submission to arrive at final price assessments. Price data is collected and assessments are published on a once per week or once per month basis. Level 1.5 price indices CRU s Level 1.5 price indices include those which are starting to be used in physical contracts, and some financial contracts that may exist. For these assessments, the data collection/calculation procedures have been enhanced: Data providers are required to sign a data providers agreement Data providers submit data electronically via the CRU Price Collection Platform (CPCP) our online price collection tool, rather than by telephone survey. Data providers submit an average weighted price for their spot transactions placed in the preceding week for forward delivery Data is collected - and indices published on a weekly basis. CRU is currently providing eight Level 1.5 price assessments for hot-rolled coil, cold-rolled coil, hot-dipped galvanised coil and plate in Germany and Italy. Level 2.0 price indices CRU s Level 2.0 price indices include those which are already used extensively in physical contracts, and any financial contracts that may exist. For these indices, the data collection/calculation procedures have been enhanced still further: Data providers are required to sign a data providers agreement which gives CRU the right to verify data submissions. Data providers submit data electronically via the CRU Price Collection Platform (CPCP) our online price collection tool, rather than by telephone survey. In addition to price data, data providers also provide volume data, which is equal to the volume of orders to which the price submission refers. Data is collected - and indices published on a weekly basis. CRU is currently providing four Level 2.0 price indices for hot-rolled coil, cold-rolled coil, hot-dipped galvanised coil and plate for the US Midwest market. Operations manuals More detailed information outlining the methodology behind CRU s different levels of price assessments can be found in the Operations Manuals for each price assessment level: CRU Prices Service Methodology and Definitions Page 10 of 51

11 Become a data provider For information on how to become a data provider for Level 2.0 price indices and the subsequent benefits you will enjoy, please visit Summary CRU maintains a policy to report accurate price assessments, regardless of the procedures employed. The evolutionary development approach allows CRU to work with market participants at different levels of data transparency to provide accurate and timely price information. In line with CRU s stated policy, each of its assessments of steel prices, regardless of at what stage they are currently at, will continue to evolve in tandem with how they are being used by both the physical and financial communities. CRU Prices Service Methodology and Definitions Page 11 of 51

12 North American Market Prices USA Midwest HR coil mill HR coil USA Domestic Midwest ; prime; base price; width and gauge extras excluded Midwest mill (East of the Rockies) Short tons Coils of at least 40,000lb each; standard packaging; standard tolerances USA Midwest CR Coil mill CR coil USA Domestic Midwest ; prime; annealed and tempered; base price; width and gauge extras excluded Midwest mill (East of the Rockies) Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances USA Midwest HDG coil mill HDG coil; USA; Domestic; Midwest ; base price; 0.06" gauge; pure zinc coating of 0.90oz/ft2; normal surface finish; further width and gauge extras excluded Midwest mill (East of the Rockies) Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances USA Midwest HDG coil (base) mill HDG coil USA Domestic Midwest ; base price; excluding coating extra; normal surface finish; further width and gauge extras excluded Midwest mill (East of the Rockies) Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances CRU Prices Service Methodology and Definitions Page 12 of 51

13 USA Midwest HDG coil (coating extra) Hot-dipped galvanised coil coating extra Coating extra for 0.06" gauge; pure zinc coating of 0.90oz/ft2; normal surface finish Midwest mill (East of the Rockies) Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances USA, Midwest; EG coil, mill EG coil; USA; Domestic; Midwest ; base price; " gauge; pure zinc coating of 0.50oz/ft2; normal surface finish; further width and gauge extras excluded Midwest mill (East of the Rockies) Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances USA, Midwest; Plate, mill Plate; USA; Domestic ASTM A36 commercial quality; base price; 3/8-2" thickness, " width, length; further size extras excluded Midwest mill (East of the Rockies) Short tons USA, Midwest; Rebar, mill Rebar; USA; Domestic; Midwest Grade 60; 0.5" diameter Midwest mill (East of the Rockies) Hundredweight Medium-sized buyers; standard lengths; standard tolerances CRU Prices Service Methodology and Definitions Page 13 of 51

14 USA, Midwest; LC wire rod, mill Mesh wire rod; USA; Domestic; Midwest <0.23% C; mesh quality Midwest mill (East of the Rockies) Hundredweight Medium-sized buyers; standard lengths; standard tolerances USA, Midwest; HC wire rod, mill HC wire rod; USA; Domestic; Midwest >0.44% C Midwest mill (East of the Rockies) Hundredweight Medium-sized buyers; standard lengths; standard tolerances USA, Midwest; Merchant bar, mill M Bar; USA; Domestic; Midwest 2 x 2 x 0.25" equal angles Midwest mill (East of the Rockies) Hundredweight Medium-sized buyers; standard lengths; standard tolerances USA, Midwest; Structurals, mill Beams; USA; Domestic; Midwest ; 8" sections; 30-80" length Midwest mill (East of the Rockies) Hundredweight Medium-sized buyers; standard tolerances CRU Prices Service Methodology and Definitions Page 14 of 51

15 USA, West Coast; HR coil, mill HR coil; USA; Domestic; West Coast ; prime; base price; width and gauge extras excluded West Coast mill Short tons Coils of at least 40,000lb each; standard packaging; standard tolerances USA, West Coast; CR coil, mill CR coil; USA; Domestic; West Coast ; prime; annealed and tempered; base price; width and gauge extras excluded West Coast mill Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances USA, West Coast; HDG coil, mill HDG coil; USA; Domestic; West Coast ; base price; 0.06" gauge; pure zinc coating of 0.90oz/ft2; normal surface finish; further width and gauge extras excluded West Coast mill Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances USA, Gulf Coast; HR coil, mill HR coil; USA; Domestic; Gulf ; prime; base price; width and gauge extras excluded Gulf Coast mill Short tons Coils of at least 40,000lb each; standard packaging; standard tolerances CRU Prices Service Methodology and Definitions Page 15 of 51

16 USA, Gulf Coast; CR coil, mill CR coil; USA; Domestic; Gulf ; prime; annealed and tempered; base price; width and gauge extras excluded Gulf Coast mill Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances USA, Gulf Coast; HDG coil, mill HDG coil; USA; Domestic; Gulf ; base price; 0.06" gauge; pure zinc coating of 0.90oz/ft2; normal surface finish; further width and gauge extras excluded Gulf Coast mill Short tons Coils of at least 20,000lb each; standard packaging; standard tolerances - USA, Import; Slab, CFR Slab; USA; Import; CFR Gulf Coast CFR Gulf Coast port - - USA, Import; Billet, CFR Billet; USA; Import; CFR Gulf Coast CFR Gulf Coast port - Raw materials surcharge (where applicable) included CRU Prices Service Methodology and Definitions Page 16 of 51

17 Central and South American Market Prices Brazil; HR coil, ex-se Brazil warehouse HR coil; Brazil; Domestic; ex-warehouse ; prime; base price; width and gauge extras excluded Ex-warehouse Southeast Brazil BRL - Raw materials surcharge (where applicable) included Brazil; CR coil, ex-se Brazil warehouse CR coil; Brazil; Domestic; ex-warehouse ; prime; base price; width and gauge extras excluded Ex-warehouse Southeast Brazil BRL - Raw materials surcharge (where applicable) included Brazil, Export; Slab, Slab; Brazil; Export; port Port - Traders' commissions are excluded; raw materials surcharges (where applicable) are included Brazil, Export; HR coil, HR coil; Brazil; Export; port Port CRU Prices Service Methodology and Definitions Page 17 of 51

18 Traders' commissions are excluded; raw materials surcharges (where applicable) are included Brazil, Export; CR coil, CR coil; Brazil; Export; port Port Traders' commissions are excluded; raw materials surcharges (where applicable) are included Brazil, Export; Billet, Billet; Latin America; Export; port Port Traders' commissions are excluded; raw materials surcharges (where applicable) are included Brazil, Export; Rebar, Rebar; Brazil; Export; port Port - Traders' commissions are excluded; raw materials surcharges (where applicable) are included Brazil, Export; LC wire rod, Mesh; Brazil; Export; port <0.23% C; mesh quality Port - CRU Prices Service Methodology and Definitions Page 18 of 51

19 Traders' commissions are excluded; raw materials surcharges (where applicable) are included pean Market Prices Germany; HR coil, parity point HR coil; Germany; Domestic; parity point ; prime; base price; width and gauge extras excluded Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Germany; CR coil, parity point CR coil; Germany; Domestic; parity point ; prime; annealed and tempered; base price; width and gauge extras excluded Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Germany; HDG coil, parity point HDG coil; Germany; Domestic; parity point ; base price; width and gauge extras excluded; pure zinc coating of 275g/m2; normal surface finish Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Germany; HDG coil (base), mill Hot-dipped galvanised coil base ; base price; width and gauge extras excluded; excluding coating extra; normal surface finish Parity point CRU Prices Service Methodology and Definitions Page 19 of 51

20 Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Germany; HDG coil (coating extra) Hot-dipped galvanised coil coating extra Coating extra for pure zinc coating of 275g/m2; normal surface finish Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Germany; EG coil, parity point EG coil; Germany; Domestic; parity point ; base price; normal surface finish; width and gauge extras excluded Parity point - - Germany; Plate, parity point Plate; Germany; Domestic ; base price; size extras excluded Medium-sized buyers; standard packaging Germany; Rebar, deliv. Rebar; Germany; Domestic; ; 12mm diameter Medium-sized buyers; standard lengths; standard packaging; standard tolerances CRU Prices Service Methodology and Definitions Page 20 of 51

21 Germany; LC wire rod, deliv. Mesh wire rod; Germany; Domestic; <0.23% C; mesh quality Medium-sized buyers; standard lengths; standard packaging Germany; HC wire rod, deliv. HC wire rod; Germany; Domestic; >0.44% C Medium-sized buyers; standard lengths; standard packaging Germany; Merchant bar, deliv. M Bar; Germany; Domestic; ; 50mm equal angles Medium-sized buyers; standard lengths; standard packaging; standard tolerances Germany; Structurals, deliv. Beams; Germany; Domestic; ; HEB mm Medium-sized buyers; standard lengths; standard packaging; standard tolerances CRU Prices Service Methodology and Definitions Page 21 of 51

22 France; HR coil, parity point HR coil; France; Domestic; parity point ; prime; base price; width and gauge extras excluded - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances France; CR coil, parity point CR coil; France; Domestic; parity point ; prime; annealed and tempered; base price; width and gauge extras excluded - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances France; HDG coil, parity point HDG coil; France; Domestic; parity point ; base price; width and gauge extras excluded; pure zinc coating of 275g/m2; normal surface finish - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances France; EG coil, parity point EG coil; France; Domestic; parity point ; base price; normal surface finish; width and gauge extras excluded - Parity point - - CRU Prices Service Methodology and Definitions Page 22 of 51

23 France; Rebar, deliv. Rebar; France; Domestic; ; 12mm diameter - Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances France; LC wire rod, deliv. Mesh wire rod; France; Domestic; <0.23% C; mesh quality - Medium-sized buyers; standard lengths; standard packaging France; HC wire rod, deliv. HC wire rod; France; Domestic; >0.44% C - Medium-sized buyers; standard lengths; standard packaging France; Merchant bar, deliv. M Bar; France; Domestic; ; 50mm equal angles - Medium-sized buyers; standard lengths; standard packaging; standard tolerances France; Structurals, deliv. Beams; France; Domestic; ; HEB mm CRU Prices Service Methodology and Definitions Page 23 of 51

24 - Medium-sized buyers; standard lengths; standard packaging; standard tolerances UK; HR coil, parity point HR coil; UK; Domestic; parity point ; prime; base price; width and gauge extras excluded - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances UK; CR coil, parity point CR coil; UK; Domestic; parity point ; prime; annealed and tempered; base price; width and gauge extras excluded - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances UK; HDG coil, parity point HDG coil; UK; Domestic; parity point ; base price; width and gauge extras excluded; pure zinc coating of 275g/m2; normal surface finish - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances UK; EG coil, parity point EG coil; UK; Domestic; parity point ; base price; normal surface finish; width and gauge extras excluded CRU Prices Service Methodology and Definitions Page 24 of 51

25 - GBP - UK; Plate, parity point Plate; UK; Domestic; parity point ; base price; size extras excluded - GBP Medium-sized buyers; standard packaging UK; Rebar, deliv. Rebar; UK; Domestic; ; 12mm diameter - GBP Medium-sized buyers; standard lengths; standard packaging; standard tolerances UK; LC wire rod, deliv. Mesh wire rod; UK; Domestic; <0.23% C; mesh quality - GBP Medium-sized buyers; standard lengths; standard packaging UK; HC wire rod, deliv. HC wire rod; UK; Domestic; >0.44% C - CRU Prices Service Methodology and Definitions Page 25 of 51

26 GBP Medium-sized buyers; standard lengths; standard packaging UK; Merchant bar, deliv. M Bar; UK; Domestic; ; 50mm equal angles - GBP Medium-sized buyers; standard lengths; standard packaging; standard tolerances UK; Structurals, deliv. Beams; UK; Domestic; ; HEB mm - GBP Medium-sized buyers; standard lengths; standard packaging; standard tolerances Italy; HR coil, parity point HR coil; Italy; Domestic; parity point ; prime; base price; width and gauge extras excluded - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Italy; CR coil, parity point CR coil; Italy; Domestic; parity point ; prime; annealed and tempered; base price; width and gauge extras excluded - Parity point CRU Prices Service Methodology and Definitions Page 26 of 51

27 Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Italy; HDG coil, parity point HDG coil; Italy; Domestic; parity point ; base price; width and gauge extras excluded; pure zinc coating of 275g/m2; normal surface finish - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances USA, Midwest; HDG coil (base), mill Hot-dipped galvanised coil base ; base price; width and gauge extras excluded; excluding coating extra; normal surface finish - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances USA, Midwest; HDG coil (coating extra) Hot-dipped galvanised coil coating extra Coating extra for pure zinc coating of 275g/m2; normal surface finish - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Italy; EG coil, parity point EG coil; Italy; Domestic; parity point ; base price; normal surface finish; width and gauge extras excluded - Parity point - CRU Prices Service Methodology and Definitions Page 27 of 51

28 - Italy; Plate, parity point Plate; Italy; Domestic ; base price; size extras excluded - Medium-sized buyers; standard packaging Italy; Billet, deliv. Billet; Italy; Domestic; - - Italy; Rebar, deliv. Rebar; Italy; Domestic; ; 12mm diameter - Medium-sized buyers; standard lengths; standard packaging; standard tolerances Italy; LC wire rod, deliv. Mesh wire rod; Italy; Domestic; <0.23% C; mesh quality - Medium-sized buyers; standard lengths; standard packaging CRU Prices Service Methodology and Definitions Page 28 of 51

29 Italy; HC wire rod, deliv. HC wire rod; Italy; Domestic; >0.44% C - Medium-sized buyers; standard lengths; standard packaging Italy; Merchant bar, deliv. M Bar; Italy; Domestic; ; 50mm equal angles - Medium-sized buyers; standard lengths; standard packaging; standard tolerances Italy; Merchant bar, deliv. M Bar; Italy; Domestic; ; 50mm equal angles - Medium-sized buyers; standard lengths; standard packaging; standard tolerances Italy; Structurals, deliv. Beams; Italy; Domestic; ; HEB mm - Medium-sized buyers; standard lengths; standard packaging; standard tolerances Spain; HR coil, parity point HR coil; Spain; Domestic; parity point ; prime; base price; width and gauge extras excluded CRU Prices Service Methodology and Definitions Page 29 of 51

30 - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Spain; CR coil, parity point CR coil; Spain; Domestic; parity point ; prime; annealed and tempered; base price; width and gauge extras excluded - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Spain; HDG coil, parity point HDG coil; Spain; Domestic; parity point ; base price; width and gauge extras excluded; pure zinc coating of 275g/m2; normal surface finish - Parity point Medium-sized buyers; coils of at least 15t each; standard packaging; standard tolerances Spain; EG coil, parity point EG coil; Spain; Domestic; parity point ; base price; normal surface finish; width and gauge extras excluded - Parity point - - Spain; Rebar, deliv. Rebar; Spain; Domestic; ; 12mm diameter CRU Prices Service Methodology and Definitions Page 30 of 51

31 - Medium-sized buyers; standard lengths; standard packaging; standard tolerances Spain; LC wire rod, deliv. Mesh wire rod; Spain; Domestic; <0.23% C; mesh quality - Medium-sized buyers; standard lengths; standard packaging Spain; HC wire rod, deliv. HC wire rod; Spain; Domestic; >0.44% C - Medium-sized buyers; standard lengths; standard packaging Spain; Merchant bar, deliv. M Bar; Spain; Domestic; ; 50mm equal angles - Medium-sized buyers; standard lengths; standard packaging; standard tolerances Spain; Structurals, deliv. Beams; Spain; Domestic; ; HEB mm - CRU Prices Service Methodology and Definitions Page 31 of 51

32 Medium-sized buyers; standard lengths; standard packaging; standard tolerances pe; Slab; Export; Slab; W.pe; Export; ARA ARA port - - pe; HR coil; Export; HR coil; W.pe; Export; ARA ARA port - pe; CR coil; Export; CR coil; W.pe; Export; ARA ARA port - pe; HDG coil; Export; HDG coil; W.pe; Export; ARA ARA port - CRU Prices Service Methodology and Definitions Page 32 of 51

33 pe; Plate; Export; Plate; W.pe; Export; ARA ARA port - pe; Billet Export; Billet; W.pe; Export; ARA Port - - pe, Export; Rebar, Rebar; W.pe; Export; port Port - Raw materials surcharge (where applicable) included pe, Export; LC Wire Rod, Mesh wire rod; W.pe; Export; port <0.23% C; mesh quality Port - Raw materials surcharge (where applicable) included CRU Prices Service Methodology and Definitions Page 33 of 51

34 pe, Export; HC Wire Rod, HC wire rod; W.pe; Export; port >0.44% C Port - Raw materials surcharge (where applicable) included pe; M Bar; Export; M Bar; W.pe; Export; ARA ARA port - Raw materials surcharge (where applicable) included pe; Beams; Export; Beams; W.pe; Export; ARA ARA port - Raw materials surcharge (where applicable) included Turkey, Export; HR coil, Hot-rolled coil; Turkey; Export Port - - CRU Prices Service Methodology and Definitions Page 34 of 51

35 Turkey, Export; CR coil, Cold-rolled coil; Turkey; Export ; prime; annealed and tempered; base price; width and gauge extras excluded Port - Turkey; Billet, Billet; Turkey; Export Port - Raw materials surcharges (where applicable) are included Turkey; Rebar, Rebar; Turkey; Export; port Port - Raw materials surcharges (where applicable) are included Turkey; LC wire rod Mesh wire rod; Turkey; Export; port <0.23% C; mesh quality Port - Raw materials surcharges (where applicable) are included CRU Prices Service Methodology and Definitions Page 35 of 51

36 Turkey; M Bar; Export; M Bar; Turkey; Export; port Port - Raw materials surcharges (where applicable) are included CIS CIS, Export; Slab, Slab; CIS; Export; Black Sea SA1006 Black Sea port - Traders' commissions are excluded; raw materials surcharges (where applicable) are included CIS, Export; HR coil, HR coil; CIS; Export; Black Sea Black Sea port Traders' commissions are excluded; raw materials surcharges (where applicable) are included CIS, Export; CR coil, CR coil; CIS; Export; Black Sea Black Sea port CRU Prices Service Methodology and Definitions Page 36 of 51

37 Traders' commissions are excluded; raw materials surcharges (where applicable) are included CIS, Export; Billet, Billet; CIS; Export; Black Sea 3SPPS Black Sea port - Traders' commissions are excluded; raw materials surcharges (where applicable) are included CIS, Export; Rebar, Rebar; CIS; Export; Black Sea ; 12mm diameter Black Sea port - Traders' commissions are excluded; raw materials surcharges (where applicable) are included CIS, Export; LC wire rod, Mesh wire rod; CIS; Export; Black Sea Mesh quality Port - Raw materials surcharges (where applicable) are included CIS; M Bar; Export; M.Bar; CIS; Export; Black Sea Port - CRU Prices Service Methodology and Definitions Page 37 of 51

38 Raw materials surcharges (where applicable) are included CIS; Beams; Export; Beams; CIS; Export; Black Sea Port - Raw materials surcharges (where applicable) are included Middle East UAE; Rebar, deliv. Rebar; UAE; Domestic; ; 10-32mm diameter ; theoretical weight - Asia India, Mumbai; HR coil, deliv. HR coil; India; Mumbai; ; prime; base price; width and gauge extras excluded Mumbai, from mill or mill-owned service centre or retail outlet INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Mumbai; CR coil, deliv. CR coil; India; Mumbai; ; prime; base price; width and gauge extras excluded Mumbai, from mill or mill-owned service centre or retail outlet INR CRU Prices Service Methodology and Definitions Page 38 of 51

39 Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge India, Mumbai; HDG coil, deliv. HDG coil; India; Mumbai; ; base price; width and gauge extras excluded; pure zinc coating of 120g/m2 on cold-rolled substrate; normal surface finish Mumbai, from mill or mill-owned service centre or retail outlet INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Mumbai; Plate, deliv. Reversing mill plate; India, Mumbai ; base price; size extras excluded Mumbai, from mill or mill-owned service centre or retail outlet INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Mumbai; Rebar, deliv. Rebar; India; Domestic; Mumbai ; 12mm diameter Mumbai INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Mumbai; LC wire rod, ex-warehouse Mesh wire rod; India; Domestic; Mumbai Mild steel Mumbai CRU Prices Service Methodology and Definitions Page 39 of 51

40 INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Delhi; HR coil, deliv. HR coil; India; Delhi; ; prime; base price; width and gauge extras excluded Delhi, from mill or mill-owned service centre or retail outlet INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Delhi; CR coil, deliv. CR coil; India; Delhi; ; prime; annealed and tempered; base price; width and gauge extras excluded Delhi, from mill or mill-owned service centre or retail outlet INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Delhi; HDG coil, deliv. HDG coil; India; Delhi; ; base price; width and gauge extras excluded; pure zinc coating of 120g/m2 on cold-rolled substrate; normal surface finish Delhi, from mill or mill-owned service centre or retail outlet INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Delhi; Rebar, deliv. Rebar; India; Domestic; Delhi ; 12mm diameter CRU Prices Service Methodology and Definitions Page 40 of 51

41 Delhi INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included India, Delhi; LC wire rod, ex-warehouse Mesh wire rod; India; Domestic; Delhi Mild steel Delhi INR Excise duties and sales tax excluded except Central Sales Tax; raw materials surcharge (where applicable) included China; HR coil, ex-shanghai warehouse HR coil; China; Domestic; ex-warehouse Q235 commercial quality; 3mm gauge, 1,500mm width ex-warehouse Shanghai RMB 17% VAT included; raw materials surcharge (where applicable) included China; CR coil, ex-shanghai warehouse CR coil; China; Domestic; ex-warehouse ST12 commercial quality; 1mm gauge, 1,250mm width ex-warehouse Shanghai RMB 17% VAT included; raw materials surcharge (where applicable) included China; HDG coil, ex-shanghai warehouse HDG coil; China; Domestic; ex-warehouse ST02 commercial quality; 1mm gauge, 1,250mm width ex-warehouse Shanghai CRU Prices Service Methodology and Definitions Page 41 of 51

42 RMB 17% VAT included; raw materials surcharge (where applicable) included China; Plate, ex-shanghai warehouse Plate; China; Domestic Q235A commercial quality; 20mm thickness ex-warehouse Shanghai RMB 17% VAT included; raw materials surcharge (where applicable) included China; Billet, ex-mill Tangshan Billet; China; Domestic; Ex-warehouse Q235; 150 x 150mm ex-warehouse Tangshan RMB 17% VAT included; raw materials surcharge (where applicable) included China; Rebar, ex-shanghai warehouse Rebar; China; Domestic; Ex-warehouse HRB 400 commercial quality; 14mm diameter rebar ex-warehouse Shanghai RMB 17% VAT included; raw materials surcharge (where applicable) included China; LC wire rod, ex-shanghai warehouse Mesh wire rod; China; Domestic; Ex-warehouse HPB 300 commercial quality; 6.5mm diameter ex-warehouse Shanghai RMB CRU Prices Service Methodology and Definitions Page 42 of 51

43 Main consumer market: Construction use 17% VAT included; raw materials surcharge (where applicable) included China; Merchant bar, ex-shanghai warehouse M Bar; China; Domestic; Ex-warehouse Q235 commercial quality; 50mm equal angles ex-warehouse Shanghai RMB 17% VAT included; raw materials surcharge (where applicable) included China; Structurals, ex-shanghai warehouse Beams; China; Domestic; Ex-warehouse Q235 commercial quality; 400mm sections ex-warehouse Shanghai RMB 17% VAT included; raw materials surcharge (where applicable) included China, Export; Billet, Billet; China; Export; port Q235; 150 x 150mm East China port VAT, VAT rebates and export taxes taken into account where necessary; raw materials surcharges (where applicable) are included China, Export; Rebar, Rebar; China; Export; port HRB 400 commercial quality; 14mm diameter debar East China port CRU Prices Service Methodology and Definitions Page 43 of 51

44 VAT, VAT rebates and export taxes taken into account where necessary; raw materials surcharges (where applicable) are included China, Export; LC wire rod, Mesh wire rod; China; Export; port HPB 300 commercial quality; 6.5mm diameter East China port Main consumer market: Construction use VAT, VAT rebates and export taxes taken into account where necessary; raw materials surcharges (where applicable) are included China, Export; Structurals, Beams; China; Export; port Q235 commercial quality; 400mm sections East China port VAT, VAT rebates and export taxes taken into account where necessary; raw materials surcharges (where applicable) are included Far East, Import; Slab (non-cis origin), CFR Slab; Far East; Import; CFR ; base price CFR E&SE Asian port Inland delivery charges excluded - Import duties, traders' commissions, local taxes; raw materials surcharge (where applicable) included Far East, Import; HR coil (non-cis origin), CFR HR coil; Far East; Import (non-cis); CFR ; base price; size extras excluded CFR E&SE Asian port; non-cis origin Inland delivery charges excluded CRU Prices Service Methodology and Definitions Page 44 of 51

45 Import duties, traders' commissions, local taxes; raw materials surcharge (where applicable) included Far East, Import; CR coil (non-cis origin), CFR CR coil; Far East; Import (non-cis); CFR ; base price; size extras excluded CFR E&SE Asian port; non-cis origin Inland delivery charges excluded Import duties, traders' commissions, local taxes; raw materials surcharge (where applicable) included Far East, Import; HDG coil (non-cis origin), CFR HDG coil; Far East; Import (non-cis); CFR ; base price; width and gauge extras excluded; pure zinc coating of 275g/m2 or equivalent; normal surface finish CFR E&SE Asian port; non-cis origin Inland delivery charges excluded Import duties, traders' commissions, local taxes; raw materials surcharge (where applicable) included Far East, Import; Plate (non-cis origin), CFR Plate; Far East; Import (non-cis); CFR ASTM A36 commercial quality; base price; 10-40mm thickness; further size extras excluded CFR E&SE Asian port; non-cis origin Inland delivery charges excluded Import duties, traders' commissions, local taxes; raw materials surcharge (where applicable) included Far East, Import; Billet (non-cis origin), CFR Billet; Far East; Import (non-cis); CFR CFR E&SE Asian port; non-cis origin Inland delivery charges excluded CRU Prices Service Methodology and Definitions Page 45 of 51