Houston ferrous scrap market switch consultation [update]

Following a consultation period and market feedback, Fastmarkets will switch its Houston ferrous scrap price series to a consumer buying assessment on January 1, 2023, from its current methodology as a dealer selling assessment.

Fastmarkets will assess the greater Houston region based on material delivered to six mills that will be included in the expanded regional footprint. The prices will be assessed as domestic consumer buying prices in US dollars per gross ton, delivered mill.

As part of this process, Fastmarkets would also delist its Houston consumer buying trend prices.

The proposed changeover and delisting will take place on January 1, 2023.

In the run up to the change, Fastmarkets will publish the consumer prices in parallel with its existing dealer selling prices effective with the monthly September settlement. It will parallel price through the remaining months of the year. The move will allow customers to track Fastmarkets’ consumer buying prices ahead of any potential adjustment of contracts.

Fastmarkets would replicate the list of existing Houston prices, which include the following:

MB-STE-0350
Steel scrap No1 heavy melt
Quality: Wrought iron and/or steel scrap ¼in and above in thickness. Individual pieces not more than 60in x 24in (charging box size) prepared in a manner to insure compact charging.
Location: Delivered mill price, US/Canada, specified city
Unit: US dollars per gross ton (Canadian cities in Canadian currency/net tons)
Publication: Monthly, typically before the 10th
ISRI Code: 200

MB-STE-0351
Steel scrap No1 busheling
Quality: Clean steel scrap, not exceeding 12in in any dimensions, including new factory busheling (for example, 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 0.50% silicon.
Location: Delivered mill, US/Canada, specified city
Unit: US dollars per gross ton (Canadian cities in Canadian currency/net tons)
Publication: Monthly, typically before the 10th
ISRI Code: 207

MB-STE-0352
Steel scrap shredded auto scrap
Quality: Homogeneous iron and steel scrap magnetically separated, originating from automobiles, unprepared No1 and No2 steel, miscellaneous baling and sheet scrap. Average density of 70 lb per cubic ft.
Location: Delivered mill, US/Canada, specified city
Unit: US dollars per gross ton (Canadian cities in Canadian currency/net tons)
Publication: Monthly, typically before the 10th
ISRI Code: 211

MB-STE-0353
Steel scrap machine shop turnings
Quality: Clean steel or wrought iron turnings, free of iron borings, non-ferrous metals in a free state, scale or excessive oil. May not include badly rusted or corroded stock.
Location: Delivered mill, US/Canada, specified city
Unit: US dollars per gross ton (Canadian cities in Canadian currency/net tons)
Publication: Monthly, typically before the 10th
ISRI Code: 219

MB-STE-0354
Steel scrap cut structural/plate 5ft max
Quality: Clean steel or wrought iron turnings, free of iron borings, non-ferrous metals in a free state, scale or excessive oil. May not include badly rusted or corroded stock.
Location: Delivered mill, US/Canada, specified city
Unit: US dollars per gross ton (Canadian cities in Canadian currency/net tons)
Publication: Monthly, typically before the 10th
ISRI Code: 219

The original notice for the 60-day consultation was published on June 7.

For more information or to provide feedback on this notice, or if you would like to provide price information by becoming a data submitter for these prices, please contact Sean Barry by email at pricing@fastmarkets.com. Please add the subject heading: FAO: Sean Barry, Re: Houston ferrous scrap market switch.

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

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