Platts Introduces Suite of Price Spreads to Explain Steel Mill Economics
by PR Newswire
NEW YORK, Jan. 15, 2013 /PRNewswire/ -- Platts, a leading energy, petrochemical and metals information provider and top source of benchmark prices, has introduced an innovative, global suite of price spreads, known as Platts Steel Mill Economics, aimed at assisting margin modeling and steel industry analysis. The new suite of spreads, which debuted yesterday, captures the costs of raw material inputs and the price of finished products in blast-furnace and electric-furnace (scrap-based) steelmaking operations in Asia, Europe and the United States.
"Platts Steel Mill Economics is a set of independent, cost-price analytical tools," said Joe Innace, Platts editorial director of metals. "By providing price valuation points throughout the steel-making process from raw inputs through blast furnace processes, these tools are designed to help our customers better understand, manage and hedge highly unpredictable iron- and steel-making margins." The price spreads support every-day and long-range decision-making by diverse industry and market players such as mill owners, risk managers, analysts, traders, brokers, financiers, purchasing managers, strategic planners and investors.
The suite includes more than a dozen spreads reflecting the difference between raw material commodities such as iron ore, coal or scrap and finished or semi-finished steel products. The suite of Platts Steel Mill Economics price spreads will be reported daily and monthly. As reported by Platts on January 14, the Steel Mill Economics price spreads were as follows on this link.
"The suite of price spreads focus on China as the key consumer of commodities like iron ore and coking coal needed to make steel," said Sebastian Lewis, Platts editorial director, China. "Other price spreads reflect steel-making economics in the U.S. and Turkey, which are more scrap-based."
The suite of price spreads are developed from pre-existing benchmark spot price assessments from Platts and The Steel Index (TSI) and will be published on an end-of-U.S. trading-day basis in SBB Steel Markets Daily, on Platts Metals Alert, via Platts Market Data-Metals and in other publications. Details of the methodology used to produce the spreads may be found at this link.
Platts' metals markets coverage spans more than 40 years, following the tradition of its parent, The McGraw-Hill Companies, which has reported on metals for some 80 years. Platts expanded its offering of metals products and services in July 2011 with the acquisition of The Steel Business Briefing Group and its specialist pricing unit The Steel Index.
For information on non-ferrous and ferrous metals, visit the Platts website www.platts.com, where you'll also find information on Platts' products and services. For more information on TSI and its methodology, visit: www.thesteelindex.com.
About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for the physical and futures markets. Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts' coverage of the carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, and shipping markets. A division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with approximately 900 employees in more than 15 offices worldwide. Additional information is available at www.platts.com.
About The McGraw-Hill Companies: The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company's leading brands will include: Standard & Poor's, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries. Additional information is available at www.mcgraw-hill.com.