After the original consultation period for this proposed launch, which ended on August 9, Fastmarkets has launched its steel scrap, index, heavy recycled steel materials, cfr east China, $ per tonne and steel scrap, index, heavy recycled steel materials, cfr north China, $ per tonne, effective on Monday August 16.

The daily cfr east China ferrous scrap price is changing from an assessment to an index, while we are introducing an additional daily cfr north China ferrous scrap price index. This launch is in response to the growing number of cargoes sold into the northern China region, which have typically been trading at $10 per tonne above the cfr eastern China market.

The specifications for the east China price index are as follows:
Steel scrap, index, heavy recycled steel materials, cfr east China, $ per tonne (MB-STE-0889)
Quality: Cut structural and plate scrap, compliant with China scrap standard HRS101
Quantity: Minimum 2,000 tonnes (bulk)
Location: cfr eastern China ports
Timing: 3-10 weeks
Unit: US$ per tonne
Payment terms: Letter of credit on sight
Publication: Daily, 5-6pm Shanghai time.
Notes: Minimum thickness of 6mm, minimum diameter of 10mm, length less than 1,500mm, width less than 600mm. Maximum unit weight 1,500kg

The specifications for the north China price index are as follows:
Steel scrap, index, heavy recycled steel materials, cfr north China, $ per tonne (MB-STE-0895)
Quality: Cut structural and plate scrap, compliant with China scrap standard HRS101
Quantity: Minimum 2,000 tonnes (bulk)
Location: cfr northern China ports
Timing: 3-10 weeks
Unit: US$ per tonne
Payment terms: Letter of credit on sight
Publication: Daily, 5-6pm Shanghai time.
Notes: Minimum thickness of 6mm, minimum diameter of 10mm, length less than 1,500mm, width less than 600mm. Maximum unit weight 1,500kg

Fastmarkets’ index methodology screens outliers and applies a quantity-weighted model to ensure that the cfr China ferrous scrap prices are the most robust in the industry. Fastmarkets has no financial interest in the level or direction of the indices.

To provide feedback on these indices, or if you would like to provide price information by becoming a data submitter, please contact Tianran Zhao or Lee Allen by email at: pricing@fastmarkets.com. Please add the subject heading: “FAO: Tianran Zhao/Lee Allen, re: China scrap prices.”

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