The Dow Jones Steel Indexes for Hot Rolled Coils and the Dow Jones Steel Indexes for Cold Rolled Coils are transaction based, volume weighted measures of the U.S. steel prices. Beginning in 2002 with the assistance of the Steel Index Advisory Board (SIAB), the methodology was developed to create a reliable, accurate and independent price gauge for the steel industry that can be used for price discovery and/or closing of futures contracts in the secondary market.

Data testing and analysis was done from November 2003 to April 2004 and on May 7, 2004 the Dow Jones Steel Index for Hot Rolled Coils and the Dow Jones Steel Index for Cold Rolled Coil Indexes were officially launched. There are currently four indexes available: The Dow Jones Steel Spot Index of Hot Rolled Coils, The Dow Jones Steel Spot Index of Cold Rolled Coils, The Dow Jones Blended Index of Hot Rolled Coils, and the Dow Jones Blended Index of Cold Rolled Coils. The indexes are published on the fifth business day of the month for the previous month's transactions based on the transaction based data submissions from our index participants. The data submissions are used for the sole purpose of calculating the HR and CR index and no data is shared with other data providers or index users.

In order to calculate the HR & CR indexes that are comparable over time, Dow Jones established the following reporting criteria as a guide:

Hot-Rolled Coils (HR)

• Includes all prime (non-plate) tons shipped in the indicated month
• Transaction Price:
  • FOB Mill
  • Spot Transaction/Base Price for Coils Shipped in the Indicated Month
  • Average Transaction/Base Price for Coils Shipped in the Indicated Month
  • Excluding Extras
  • Including Surcharges

Cold-Rolled Coils (CR)

• Includes all prime fully processed tons shipped in the indicated month
• Transaction Price:
  • FOB Mill
  • Spot Transaction/Base Price for Coils Shipped in the Indicated Month
  • Average Transaction/Base Price for Coils Shipped in the Indicated Month
  • Excluding Extras
  • Including Surcharges

Dow Jones has a confidentiality disclosure agreement in place with every data provider sending data for the purposes of index calculation. This agreement was set in place in consultation with the Dow Jones Steel Index Advisory Board and the industry not only to ensure the privacy of the information being submitted to Dow Jones, but to give index participants the confidence to submit accurate information for the calculation of the indexes. The confidentiality agreement stipulates that Dow Jones can conduct an audit by a third party at Dow Jones' sole discretion and expense.

For additional information on the indexes or on how to become a data provider, please contact our Transaction Based Index desk at 609-520-7374 or send an email to djenergy@dowjones.com