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MEPS Steel Prices On-line MEPS Steel Reports On-line MEPS Steel Purchasing Price Index

Q4/2006 = 100


 (based on $US Values)

Hot Rolled Plate

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
EU AVERAGE Non Sour 85.4 85.4 91 92.6 93.4 Latest Index available in the International Steel Review
Sour 91.7 91.7 97.3 98.4 101.5
ASIA AVERAGE Non Sour 84.9 86.8 93.2 96.9 95.1
Sour 94 96 103.9 107.1 107.1

Hot Rolled Coil

EU AVERAGE Non Sour 97.6 97.6 106 108.3 105.8 Latest Index available in the International Steel Review
Sour 98 98 106 107.7 108.5
ASIA AVERAGE Non Sour 98 99.9 108.7 113.8 108.3
Sour 98.3 100.2 110.2 114.7 112.3

To calculate an index number, divide the selected month’s price by the starting (base) value. Then multiply by 100. For example: Index number = ($720 / $500) x 100 = 144. To calculate the month-on-month percentage change, divide this month’s value by last month’s value. Then subtract 1 and multiply by 100. For example: Percentage change = ((120 / 110) -1) x 100 = +9%.


MEPS invites steel mills and users of API material to supply, in confidence, their agreed selling prices for specific sizes and grade of API material FOB. In return, MEPS supplies background market information in the discussions.

The results of the investigation are evaluated to check that the values presented are within an acceptable tolerance band. Those outside a reasonable tolerance are excluded from the final results. Finally, the data is analysed and average quarterly steel prices calculated. The pricing information is then translated into index values for inclusion in the report.

We should point out that MEPS research is carried out by ascertaining the prices agreed and sold in US Dollar values. The information is kept strictly confidential. At no time will price data be disclosed to third parties.


Prices are obtained for sour and non-sour material in grades X60 and X65. A composite figure for the two API grades is presented. The products researched are hot rolled coil and plate supplied from Asian and European Union producers.


MEPS commenced the research by making contact with steel manufacturers involved in the production of the relevant grades and product forms to obtain agreed selling prices with their customers in the line-pipe business. Many of the steel mills were known to us from research into carbon steel prices. Several of the contacts had a history of providing realistic data for MEPS research in many parts of the world.

To enable MEPS to obtain an objective view of the market, purchase prices were also collected from buyers of API grade for line-pipe manufacturing. This information was compared with that from the mills to check its validity. When the data was comparable the respondent was retained. When it was not the information was rejected.

All the pricing information was collected and an average price for each product and grade was calculated each quarter. When all the information was available a figure was calculated to determine the starting prices for each of the indices. After detailed evaluation, it was decided that the average selling and purchasing values collected in the final quarter of 2006 would be the starting point for the index and defined as 100.

In subsequent quarters, to date, MEPS has undertaken similar procedures for obtaining price information. Average figures have been calculated and a new index value published.

All prices obtained in the research have remained confidential to MEPS. At all times, the identity of the respondent and the prices provided have been kept in safe keeping over the period. Over time, new respondents have been included and old ones have been excluded.

It is important to note that this type of research is heavily dependent on trust between MEPS and the steel price providers. The mills and line-pipe producers need to understand that the information will be kept strictly confidential.

MEPS has been collecting steel prices since 1980. It has been publishing the results for almost 30 years. All the data is aggregated and an average figure produced. In this way no company information can be identified.

For the API research, actual price information is not published. MEPS calculate the index values to show quarterly changes in agreed prices.


Index pricing has become a popular tool for use by buyers and sellers who are involved in medium and long term relationships. Buying and selling using index values has the following benefits for both parties.

• Cost savings by minimising negotiating time and discussions on a regular basis.

• Eliminates the background research necessary on both sides to prepare for regular meetings prior to reaching agreements on price.

• Buyers and sellers can concentrate their resources on the key points of quality, delivery lead times etc.

• The indexes are provided from independently researched information showing quarterly changes in API steel prices. These can be in both upward and downward directions.

The above benefits are only available if the index provider has the experience, integrity and qualifications necessary to carry out the work. The cooperation of buyers and sellers is also essential.

The reference point for all the current indexes is API steel prices agreed in the final quarter of 2006 from MEPS research at that time. Investigations have been carried out on a regular basis since that time and quarterly indexes published.

Copyright 2018 by MEPS International Ltd.

Prices in the above table are for reference only. No data may be reproduced in any manner whatsoever without written permission from MEPS.