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The new index uses index methodology from sister company Metal Bulletin and will be branded:
• Ferrous Scrap Turkey (USA material) Index
The new index complements the existing Ferrous Scrap Turkey Index, launched in September 2009, which will be rebranded as:
• Ferrous Scrap Turkey (North Europe material) Index
This decision reflects the need in the market for separate price benchmarks for HMS 1&2 (80:20) material originating from the USA and from northern Europe.
The indices are published daily at 4pm London time.
On Monday July 21, the new Ferrous Scrap Turkey (US material) Index closed at $374.84 per tonne, while the Ferrous Scrap Turkey (Northern European material) Index closed at $366.61 per tonne.
Both indices use a tonnage-weighted calculation of actual transactions which have been normalised to a base chemistry and delivery point, in line with Metal Bulletin’s index methodology.
A full outline of methodology and specifications can be found here.
The data is normalised using a model that has been developed in-house, based on the value-in-use applied by the market to different material grades, to a single major scrap grade (HMS 1&2 (80:20)), and using the latest freight rates supplied by leading freight brokers to a single port (Iskenderun).
This methodology allows Metal Bulletin to provide a fair and unbiased representation of the spot market for ferrous scrap delivered to Turkey, one of the most important steelmaking raw material reference prices globally.