LONDON AND PITTSBURGH, June 5, 2013 /CNW/ - After a 12 month planning
period, CRU has engaged a leading Big 4 audit firm to carry out an
audit of its Level 2.0 price assessments: US Midwest hot-rolled coil,
cold-rolled coil, hot-dipped galvanized coil and plate.
The audit will have two key functions. Firstly, the data providers will
complete a detailed electronic survey and a sample of providers will be
selected for an on-site visit. Secondly, CRU's Level 2.0 processes and
procedures will be examined and subjected to verification.
CRU's hot-rolled coil index is used to settle thousands of physical
steel contracts in North America with a combined value of over $20bn
each year, as well as CME's hot-rolled coil futures and options
Nick Morgan, CEO of CRU International, commented: "To our knowledge CRU
is the first PRA in the entire commodities space to carry out this type
of third-party audit. Foreseeing a time when benchmark prices might be scrutinized, we
introduced this unique audit clause into our data provider agreement
back in 2007 - a time when the use of our US Midwest hot-rolled coil
index started to gain traction."
He went on to say: "We are independent and not beholden to advertisers,
sponsors or other third parties. This audit process highlights the
robustness of our approach."
Glenn Cooney, Head of Operations for CRU Indices, said "Our US Midwest
hot-rolled coil index has withstood the test of time since its launch
in 1980. We have been market leaders in carbon steel indices in North
America for many years due to our independence, accuracy and that our
indices are based on actual, verifiable transactions. The investment in
third-party audits demonstrates our ongoing commitment to producing the
most robust price indices in the market."
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 1960s and headquartered in London, CRU has over 200
employees worldwide and has offices in Pittsburgh, Beijing, Mumbai and
CRU's weekly North American steel price indices are calculated using
their Level 2.0 methodology, available to download at http://www.cruindices.com/Methodology/OperationsManuals
Data providers consist of reputable, respected and established companies
that represent the entire steel supply chain, from integrated and mini
mills to service centers, tube companies and other end users of carbon
Data submitted is subject to statistical checks with outliers removed.
Also, a cap weighting according to volume is applied to ensure that no
single data point accounts for more than 30% of the total.
Further information is available at http://www.cruindices.com
SOURCE: CRU Group
For further information:
For queries relating to the U.S. Midwest HR, CR, HDG coil or plate indices, please contact:
Head of Operations, CRU Indices
Principal Consultant - Steel