The Mint reported that JSW Steel has flagged serious issues in the price discovery process of coking coal by Platts. JSW Steel’s Joint Managing Director Mr Seshagiri Rao claimed that “Deals between related parties were being included in Platt’s price assessments. This leads to price distortion, as steel makers fix long-term contracts with metallurgical coal suppliers based on the Platts price index for the commodity.”Mr Rao said “Platts is reported to have a governance framework, in line with Principles for Price Reporting Agencies as published by IOSCO. However, it is a matter of concern as it is learnt that the deals between certain coal suppliers and their sister trading companies or trader-to-trader bids and offers with no actual deal are also registered for assessment & evaluation of reported index price. This is expected to create distortion or misrepresentation in index price.”S&P Global’s Platts, a provider of price and information about energy and commodities, however, defended its price assessment methodology. Iron ore and coking coal are the primary raw materials used by steelmakers.International Organization of Securities Commissions, the international body of the world’s securities regulators, is the global standard setter for the securities sector.
The Mint reported that JSW Steel has flagged serious issues in the price discovery process of coking coal by Platts. JSW Steel’s Joint Managing Director Mr Seshagiri Rao claimed that “Deals between related parties were being included in Platt’s price assessments. This leads to price distortion, as steel makers fix long-term contracts with metallurgical coal suppliers based on the Platts price index for the commodity.”Mr Rao said “Platts is reported to have a governance framework, in line with Principles for Price Reporting Agencies as published by IOSCO. However, it is a matter of concern as it is learnt that the deals between certain coal suppliers and their sister trading companies or trader-to-trader bids and offers with no actual deal are also registered for assessment & evaluation of reported index price. This is expected to create distortion or misrepresentation in index price.”S&P Global’s Platts, a provider of price and information about energy and commodities, however, defended its price assessment methodology. Iron ore and coking coal are the primary raw materials used by steelmakers.International Organization of Securities Commissions, the international body of the world’s securities regulators, is the global standard setter for the securities sector.
