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: pricing@fastmarkets.com. 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.

What to read next
Fastmarkets has corrected its MB-STS-0259 stainless steel scrap 316 solids domestic, delivered merchants UK, £/tonne price assessment, which was published incorrectly on Friday June 14.
Fastmarkets will not publish any price assessments for corn, soybean, Americas vegoils and meals, or US wheat, on Wednesday June 19.
Fastmarkets proposes to amend the name of the MB-AL-0231 Aluminium P1020A all-in price, delivered Midwest US, US cents/lb to clarify that the price is based on the London Metal Exchange cash aluminium price.
The publication of Fastmarkets’ Vietnamese steel scrap import assessments for Friday June 14 were delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
In the open consultation, Fastmarkets FOEX did not propose any changes, and there was no feedback received during the process. No material changes were made to the current methodology. A newly dated methodology document has been posted here.
The publication of Fastmarkets’ aluminium scrap and secondary aluminium ingot price assessments for Wednesday June 12 were delayed because of a reporter error. Fastmarkets’ pricing database has been updated.