PRICING NOTICE: Proposal to amend update frequency of normalization coefficients of Turkey and Rotterdam ferrous scrap indices
Fastmarkets proposes to update the normalization coefficients of the Turkey and Rotterdam ferrous scrap indices at a rate of once per month instead of once per quarter at present.
The indices to which this proposed change relates are the HMS 1&2 (80:20), Northern Europe-origin material, cfr Turkey index; the HMS 1&2 (80:20), USA-origin material, cfr Turkey index; and the HMS 1&2 (80:20), Northern Europe-origin material, fob Rotterdam index.
Coefficients are used to normalize the price data of material that differs from the base specification but are within the range specifications listed in Fastmarkets’ methodology and are calculated using regression analysis of the collected data points. The analysis allows Fastmarkets MB to capture the value-in-use applied by the market to different materials and normalize to a single specification.
Under the proposed change, these normalization coefficients will be updated one per month rather than once per quarter to ensure the normalization accurately reflects the constantly changing value-in-use relationship of different grades and origins.
The consultation period for this proposed amendment will end one month from the date of this pricing notice, on February 25, with changes taking place from February 26.
To provide feedback on these indices or if you would like to provide price information by becoming a data submitter to this indices, please contact Cem Turken by email at: firstname.lastname@example.org. Please add the subject heading FAO: Cem Turken, re: Turkey ferrous scrap index normalization coefficients.
To see all Fastmarkets’ pricing methodology and specification documents, please go to https://www.metalbulletin.com/prices/pricing-methodology.html.