CME to settle new contracts against Fastmarkets’ Chicago No. 1 busheling assessment

Fastmarkets, one of the industry’s leading cross-commodity price reporting agencies (PRA), is pleased to announce that the Chicago Mercantile Exchange (CME) will settle new futures contracts against Fastmarkets’ benchmark assessment for the Chicago No.1 busheling ferrous scrap price.

Trading for these contracts will begin on Monday, December 16, 2024, on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort, subject to completion of all relevant review periods with the U.S. Commodity Futures Trading Commission (CFTC).

Read more on the contract on the CME’s website here.

Fastmarkets will continue to publish MB-STE-0422 steel scrap No1 busheling, index, delivered Midwest mill, $/gross ton throughout 2025 to support existing contracts settled against that index.

In response to this change, Fastmarkets proposes to discontinue publication of the following Midwest steel scrap indices effective January 2025:

• MB-STE-0423 steel scrap shredded, index, delivered Midwest mill, $/gross ton
• MB-STE-0424 steel scrap No.1 heavy melt, index, delivered Midwest mill, $/gross ton
• MB-STE-0882 steel scrap No.1 busheling, indicator, delivered Midwest mill, $/gross ton

The consultation period for this proposed delisting will end 30 days from the date of publication of a pricing notice on Friday December 13. An update to that notice will be published on that day. Subject to market feedback, the proposed changes would take place beginning at the start of January 2025.

To read the full pricing notice, click here.

Fastmarkets and CME have published a frequently asked questions (FAQ) document to provide additional clarity on the changes, addressing key questions for market participants.

FAQ: Chicago No1 Busheling Ferrous Scrap (Fastmarkets) futures – CME Group

To provide feedback on this proposal, or if you would like to provide price information by becoming a data submitter to these prices, please contact Sean Barry by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Sean Barry, re: CME to settle new contracts against Fastmarkets’ Chicago No.1 busheling assessment.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request. 

To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.