Houston ferrous scrap market switch consultation

Fastmarkets is inviting feedback on plans to expand and switch its Houston ferrous scrap price series to a consumer buying assessment from its current methodology as a dealer selling assessment. It comes in response to the Houston region becoming a more defined consumer market.

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

The proposed changeover would take place on January 1, 2023.

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

A 60-day consultation on this proposal will end on August 4. An update to this notice will be published on August 5.

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

As part of this process, Fastmarkets would also delist its Houston consumer buying trend prices. This proposed delisting would also take place on January 1, 2023.

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.

What to read next
Fastmarkets has clarified the specifications of its copper grade A cathode and non exchange-deliverable equivalent-grade (EQ) copper cathode premiums, to avoid any confusion regarding the deliverable status of its copper cathode assessments.
Fastmarkets is inviting feedback from the industry on the pricing methodology for its MB-IRO-0004 pig iron import, cfr Gulf of Mexico, US assessment as part of its annual methodology review process.
In the open consultation, Fastmarkets FOEX did not propose any changes and the feedback received was fully supportive to our current methodology. No material changes were made to the current methodology. A newly dated methodology document will be posted soon. For all Fastmarkets FOEX pricing notices and to view our methodology guides please see here.
This consultation, until which is open until June 24, 2023, seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications, and publication frequency. You […]
Fastmarkets is clarifying recent changes to its germanium dioxide price assessments and the reintroduction of the assessment of the price for MB-GER-0001 germanium dioxide, in-whs China, $ per kg, following market feedback.
Fastmarkets will reintroduce its MB-GER-0001 Germanium dioxide, in-whs China, price assessment on Friday May 24 after it was discontinued on May 10.