TSI launches wire rod price change index

WASHINGTON (Scrap Monster): The Steel Index (TSI), leading provider of independent price information for key steel, scrap and iron ore products around the world has launched a price change index for European cold heading boron-alloyed steel wire rod, a key material for fasteners used in the automotive industry.

The new index extends TSI’s existing range of steel, scrap and iron ore reference prices, widely used by industrial companies and financial markets around the world.

This specially-designed index, originally developed by the German Fastener Manufacturers Association (DSV) in conjunction with BMW, captures the average change in prices paid for the material month-on-month, rather than the price itself. Boron-alloyed wire rod can account for up to 70% of the total fastener price and the index will serve to significantly increase the efficiency of the purchasing process for automotive companies and their fastener suppliers.

Dr Stefan Beyer, General Manager of DSV, notes "The increasing volatility of steel prices has created greater demands for the application of a robust and reliable price change index for cold heading wire rod, especially for fasteners, as a basis for negotiations."

“We are always delighted to work with steelmaking and steel-consuming industries to create products which address specific industry needs for managing pricing and price risk,” adds Vaseem Karbhari, Steel Analyst at TSI. “This complements TSI’s European hot rolled coil indices which are now widely adopted by the industry and form the basis for hedging instruments.”

The index is compiled and published monthly, expressed in Euro per metric tonne and reflects the delivered price change from October 2010 (base period). Initially it will be based on data confidentially submitted by German, Italian and French steel mills and fastener manaufacturers, with the intention to extend the scope in the future to include transactions in other European countries.