CRU Celebrates 33 Years of Price Discovery for the U.S. Midwest Steel Hot-rolled Coil Index
LONDON, January 30, 2013 /PRNewswire/ –
The CRU index has withstood challenges over 33 years as it has evolved from a monthly
spot price appraisal to the most robust, transparent methodology available today. What
began 33 years ago has now been in full use since 2008 as the price index used to settle
CME’s U.S. Midwest HRC steel futures and options contracts, as well as thousands of
physical market contracts over the last decade.
The U.S. Midwest HRC, which began in 1980, was published on a monthly basis (2nd
Wednesday of each month) until it became weekly in February 2009. The index currently
utilizes our most sophisticated ‘Level 2.0′ procedures, publically available to download
“ArcelorMittal is comfortable that CRU is consistent with its methodology in deriving
and publishing its assessments,” said Dan Mull, Executive Vice President of Sales &
Marketing at ArcelorMittal USA.
The CRU index is made up of submissions from data providers that have to be invited to
participate with the split of producer reported prices accounting for 50.76% of
submissions in 2012 with buyers submitting the balance of 49.24% of volume. Data providers
consist of reputable, respected and established companies that make up the entire steel
supply chain. From integrated and mini mills to service centers, traders, tube companies
and other end users of HRC, CRU’s data providers are the cream of the crop.
“Our U.S. Midwest price index is the most balanced and robust for HRC worldwide. The
sophisticated Level 2.0. procedures we employ boast a unique feature among ferrous-related
price reporting agency methodologies – the right to audit the data we receive,” said Glenn
Cooney, Head of Operations at CRU Indices. “Data submitted is clean, as submissions are
subject to statistical checks with outliers removed. Also, a 30% cap weighting is applied
to ensure that no single data point accounts for more than 30% of the total. Additionally,
the U.S. Midwest HRC index is approved by Josh Spoores, CRU’s North American Steel
Analyst, who has a rich and intimate knowledge of the market.”
Further information is available at http://www.cruindices.com
Note for editors:
CRU is an independent, privately owned, analysis, consulting and events business
specializing in the mining, metals and fertilizer sectors.
Founded in the late 1960′s and headquartered in London, CRU has over 200 employees
worldwide throughout its offices in Pittsburgh, Beijing, Mumbai and Santiago.
For queries relating to the U.S. Midwest HR, CR, HDG coil or plate indices, please contact: Glenn Cooney Head of Operations, CRU Indices Email: email@example.com Telephone: +44-20-7903-2056 Josh Spoores Principal Consultant - Steel Email: firstname.lastname@example.org Telephone: +1-724-940-7100
SOURCE CRU Group