Prices
CRU to Audit U.S. Midwest HRC Price Data Providers
Written by Tim Triplett
November 19, 2019
CRU has underlined its commitment to ensuring “The CRU,” its U.S. Midwest HRC price, remains the most reliable and trusted reference in the industry by initiating a second audit of its data providers. The audit will be conducted by third-party audit firm PricewaterhouseCoopers LLP (PwC). It has been in planning for some time as a follow-up to our previous third-party audit and as part of our ongoing price governance processes.
The audit will proceed over the coming months, covering active U.S. Midwest HRC price providers to CRU, requiring submission of supporting documentation and evidence. In addition, a sample of data providers will receive a site visit from PwC in order to walk through processes and corroborate responses and supporting evidence provided.
CRU’s network of data providers—those who provide HRC prices to CRU—extends along the supply chain, including mills through steel service centers and end users. It also ranges across firm sizes including large, but also medium-sized and smaller enterprises.
“Building on the previous audit, which focused on reporting processes, this audit will scrutinize data provider adherence with published reporting specifications and the actual values reported,” said CRU Compliance Lead Claire Ballak.
“It will also support the ongoing methodology and definitions development process through the provision of independently-sourced additional information on wider aspects of HRC price reporting to CRU,” added CRU Head of Prices Development Chris Houlden.
CRU’s FOB U.S. Midwest mill HRC price, “The CRU,” is the leading steel price benchmark in North America and is used in the settlement of futures and options contracts on the CME. It is based exclusively on transaction data, to the exclusion of bid/offer or opinions of price information. It helps customers across the steel supply chain manage their commercial operations, mitigate price risk and monitor and analyse the market.
For more detail on CRU’s U.S. Midwest HRC price, please see: https://www.crugroup.com/the-cru/
Tim Triplett
Read more from Tim TriplettLatest in Prices
SMU Survey: Mills less negotiable on spot prices
Most steel buyers responding to our market survey this week reported that domestic mills are considerably less willing to talk price on sheet and plate products than they were in recent weeks.
Price gap between US HRC, most imports narrows slightly
In dollar-per-ton terms, US product is on average $141/st less than landed import prices (inclusive of the 50% tariff). That’s down from $148/st last week.
SMU price ranges: Sheet ticks higher, plate stable
Sheet steel indices increased across the board this week, while plate prices held steady. All five of SMU’s price indices are higher than they were two weeks ago, and all but one are above levels recorded four weeks ago.
Nucor lifts HR spot price by $10/ton
Nucor has raised its weekly spot list price on hot-rolled coil by $10 per short ton (st) after keeping it unchanged since Aug. 25.
Atlas Tube up $50/ton following NLMK USA sheet price hike
Atlas Tube, in a leading move, said it aims to increase prices for mechanical tubing, hollow structural sections (HSS), and piling products by at least $50 per short ton (st).