TSI Freight Analyser

Not for mobile Use.

Why we want it.• Displaying freight data is a key part of the world steel

pricing ‘puzzle’.• It’s one thing knowing the price of steel around the

world.• Knowing freight prices makes you a trader.• E.G. USA imported 14.3 million tonnes of steel in 2009...

That’s US$ 8,580,000,000 worth.• Imports were made by traders recognising a price gap

between regions.• No competitor shows this information, so it will be a

great differentiator for TSI.

TSI tracks five key steel grades across the world’s major producing/consuming regions i.e. HRC

TSI’s online price analyser lets users chart up prices for visual comparison

i.e. Hot Rolled Coil (US$/s.ton)

May 09 Jun 09 Jul 09 Aug 09 Sep 09350

400

450

500

550

600

US N.Eur S.Eur Turkey

Turkish and US hot rolled coil prices diverge between June and July – by up to US$70/s.ton.....

Opportunity knocks....

If customers know the true profit potential via shipping costs.

May 09 Jun 09 Jul 09 Aug 09 Sep 09350

400

450

500

550

600

US Turkey

Freight Routes

• China – Europe• Europe – China• China – US• US - China• US – EU• EU – US• Europe – Black Sea• Turkey – Arabian Gulf• Europe – Arabian Gulf• China – Arabian Gulf

• These are the key routes that match our steel regions.

• Sometimes we have repetition. This is because they are not just one price. IE ships coming from China are full – going back to China they are often empty, so much cheaper to charter.

• A canny trader fills the ship with scrap for the Chinese steel mills.

Navigating to the online freight analyser

• We envisage a tab to click ‘freight analyser’ on our website, which customers can use to get to this information.

• It should have a drop down menu to choose the origin and destination points.

Route SelectionRoute

China – EuropeEurope – China

China – USUS - China

US – EUEU – US

Europe – Black SeaTurkey – Arabian GulfEurope – Arabian GulfChina – Arabian Gulf

Click to drop down, click to select route.

Selecting one will join the two locations, increase map size, bring up the freight rate and additional info.

I.E. China - USA

China – US freight cost 10.5.10 US$14.52/tApproximate journey time 8 weeks.

Back to Route Selection

Webdev Value Added

• We would go bananas with joy if the system can interrogate our back end for steel prices in both ends of the journeys and display all of them.

• It would be harmonised into US$/t (as that is what the freight rates are in). This is already there in the back end.

• This will be great as it will make it harder for competitors to catch up. If not, they just have to display freight rates – a low bar for them to hurdle!

I.E. Europe – Asian Gulf

Europe – AG freight cost 10.5.10 US$9.17/tApproximate journey time 2.5 weeks.

Back to Route Selection

N. Eur HRC 620 US$/tCRC 700 US$/tHDG 780 US$/t

Rebar 600 US$/tPlate 650 US$/t

Turkish HRCHRC 820 US$/tCRC 900 US$/t

HDG 980 US$/t Rebar 700 US$/tPlate 880 US$/t

That was steel...

• We also have lots of unique information for iron ore freight transport!

• It’s set up in exactly the same way and is in the back end also.

• To stop people getting confused between supramax (steel) and capesize (iron ore) it is easier to separate them entirely.

Info Selection

Click one. The Steel one we’ve just been through. Iron ore is exactly the same.

SteelIron Ore

Iron Ore Freight Routes

• Brazil - Qingdao• Brazil - Tianjin• Australia - Qingdao• Australia - Tianjin• E. India - Qingdao• E. India - Tianjin• W. India - Qingdao• W. India - Tianjin• W. Africa - Qingdao• W. Africa - Tianjin

I.E. Europe – Asian GulfBrazil – Qingdao freight cost 10.5.10 US$19.17/t

Approximate journey time 8.2 weeks.TSI iron ore Daily Price US$/t

TSI iron ore weekly average US$/tTSI Quarterly Average US$/t

Back to Route Selection

That’s the mapping out of the way!

Downloadable Ability Also

• The data also needs to be downloadable as the steel data currently is.

• Plus be changed from weekly to monthly to quarterly.

But...we should be able to plug this data into our existing dataset already...

i.e. On the below analyser, it already shows USA and Turkey and prices. Is it possible to add freight data to this and have it downloadable as the steel data currently is?We have to make this as seamless as possible so that people can actually get use out of the tool we are providing.

o Freight o Value: 13.21

Left example is what we currently have. Right example is with freight data added. See how much more useful this is: In column F the user can see the absolute difference in dollars

between the regions. In Column G they can remove freight costs also to see what the potential profit is.

September – December 08 they could have made a fortune!

Next Steps

• Webdev can have a look at the possibility of flash maps and how to manipulate them + data.

• Can you also look at integrating the ability to download the information as in slides 11-13?

• It really should not require anything major development-wise....

• Thanks!