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This adjustment comes following feedback that published prices for that grade in those markets were no longer reflective of real transaction values, despite the published trends for this market being historically accurate.
The original consultation notice for this realignment was published on March 24; the subsequent decision notice and first update were published on April 25 and May 8 respectively.
The specifications for the affected scrap grades are as follows:
MB-STE-0306MB-STE-0251MB-STE-0428MB-STE-0526MB-STE-0527Assessment: No1 bushelingQuality: Clean steel scrap, maximum size 2 feet by 5 feet, including new factory busheling (sheet clippings, stampings, etc). May not include old auto body and fender stock. Free of metal coated, limed, vitreous enameled and electrical sheet containing more than 0.5% silicon.Location: Delivered mill, US/Canada, specified cityUnit: USD per gross ton (Canadian cities in Canadian currency/net tons)Publication: Monthly, typically before the 10thISRI Code: 207Notes: A separate methodology for the AMM Midwest index is available
Subscribers should be made aware that this decision will affect the daily composite price that Fastmarkets publishes for that grade.
Fastmarkets’ steel scrap No1 busheling, daily composite, delivered mill US averages the No1 busheling prices in Chicago, Cleveland and Pittsburgh; Fastmarkets publishes the settlement prices for those markets each month.
Based on feedback received during this month’s pricing session for No1 busheling in Pittsburgh, the price has been published at $515 per gross ton. This month’s published price accounts for the $20-per-ton downtrend in Pittsburgh busheling prices in May versus April as well as a $20-per-ton non-market adjustment upward.
Based on the prices published in the three composite markets this month, the daily composite for No1 busheling will be $6.66 per gross ton higher than it would have been had No1 busheling in Pittsburgh moved purely on trend in the month of May. April’s published price was $515 per gross ton.
Based on feedback provided for No1 busheling in Cincinnati, the price has been settled at $540 per gross ton for May. This constitutes a $20-per-ton downtrend for that market in May compared with April and an $80-per-ton non-market adjustment upward.
To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to the ferrous scrap assessments, please contact Amy Hinton at pricing@fastmarkets.com. Please add the subject heading: FAO: Amy Hinton re: No1 busheling, Cincinnati and Pittsburgh.
To see all of Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.
[Editor’s Note: This notice, published on Wednesday May 10, includes the monthly price assessments, as well as the daily and weekly composite prices, that were affected by this adjustment.]