Extension of consultation period on the proposal to discontinue US Midwest ferrous scrap shred, heavy melt indices, busheling indicator

Fastmarkets proposed on November 13 to discontinue those prices in response to forthcoming changes to the busheling futures contract on the CME, which is currently settled against Fastmarkets’ steel scrap No1 busheling index. The change will see the exchange settle new contracts against Fastmarkets’ assessment of the Chicago No1 busheling price. This will be available for trading on the CME Globex electronic platform and for submission for clearing via CME ClearPort on Monday December 16, 2024, pending all relevant CFTC regulatory review periods.

The original consultation notice can be found here.

The code, name and current specifications for the affected markets are as follows:

MB-STE-0423 Steel scrap shredded, index, delivered Midwest mill, $/gross ton
Quality: ISRI Grade 211 – shredded scrap Homogeneous iron and steel scrap magnetically separated, originating from automobiles, unprepared No1 and No2 steel, miscellaneous baling and sheet scrap. Average density 70 pounds per cubic foot.
Quantity: Min 500 gross tons
Location: Delivered US Midwest mill – any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and NW Ohio Timing: Within 30 days
Unit: US dollars per gross ton
Payment terms: Net 30 days post delivery
Publication date: 10th of each month by 4pm New York time (or following working day)
Notes: All origins

MB-STE-0424 Steel scrap No1 heavy melt, index, delivered Midwest mill, $/gross ton
Quality: ISRI Grade 200 – No1 heavy melting steel. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 24 inches (charging box size) prepared in a manner to insure compact charging ISRI Grade 202 – No1 heavy melting steel 5 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 18 inches (charging box size) prepared in a manner to insure compact charging.
Quantity: Min 500 gross tons
Location: Delivered Midwest mill – any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and NW Ohio
Timing: Within 30 days Unit: US dollars per gross ton
Payment terms: Net 30 days post delivery
Publication: 10th of each month by 4pm New York time (or following working day)
Notes: All origins

MB-STE-0882 Steel scrap No1 busheling, indicator, delivered Midwest mill, $/gross ton
Quality: Institute of Scrap Recycling Industries (ISRI) Grade 207 – No1 busheling Ferrous busheling. Compliant to ISRI Specifications 7 No1 busheling. 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.
Quantity: Min 500 gross tons
Location: Delivered US Midwest mill – any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and northwest Ohio
Timing: Within 30 days Unit: US dollars per gross ton
Payment terms: Net 30 days post delivery
Publication: Daily from 4-5pm New York time

The realignment does not include the following grade:

MB-STE-0422 Steel scrap No1 busheling, index, delivered Midwest mill, $/gross ton

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.

These prices are a part of the Fastmarkets scrap package.

The extended consultation period for this proposed discontinuation starts on December 13 and will end on January 12, 2025. An update to this notice will be published on January 13.

All short-term forecasts associated with these prices produced by the Fastmarkets research team, if any, will also be discontinued.

To provide feedback on this proposal to discontinue, 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: US ferrous scrap indexes for shredded and heavy melt, busheling indicator.”

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/methodology.