Proposal to adjust Alabama bundles, busheling prices [update]

Following a consultation period and market feedback, Fastmarkets has realigned its consumer buying prices for No1 bundles and No1 busheling scrap in Alabama, effective from the September 2022 monthly settlement.

The price for steel scrap No1 bundles in Alabama is $400 per gross ton, which represents a $20-per-ton market decrease and a $58-per-ton non-market adjustment. The price had previously been assessed at $362 per ton for the August settlement.

The price for steel scrap No1 busheling in Alabama is $400 per gross ton, which represents a $20-per-ton market decrease and a $50 per-ton non-market adjustment. The price had previously been assessed at $370 per ton for the August settlement.

Although Fastmarkets believes that its monthly trends have been correct, there has been feedback from the market that bundles and busheling scrap in Alabama no longer reflect actual transaction prices, owing in part due to market dislocations from the peak of the Covid-19 pandemic last year.

The specifications for the affected scrap grades are as follows:

MB-STE-0215 Steel scrap No1 bundles, consumer buying price, delivered mill Alabama
Assessment: No1 bundles
Quality: New black steel sheet scrap, clippings or skeleton scrap, compressed or hand bundled, to charging box size, and weighing not less than 75 pounds per cubic foot. (Hand bundles are tightly secured for handling with a magnet.) May include Stanley balls or mandrel wound bundles or skeleton reels, tightly secured. May include chemically detinned material. May not include old auto body or fender stock. Free of metal coated, limed, vitreous enameled, and electrical sheet containing over 0.50 percent silicon.
Location: Delivered mill Alabama
Unit: USD per gross ton
Publication: Monthly, typically before the 10th
Notes: ISRI Code: 208

MB-STE-0216 Steel scrap No1 busheling, consumer buying price, delivered mill Alabama
Assessment: No1 busheling
Quality: Clean steel scrap, not exceeding 12 inches 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 over 0.50 percent silicon.
Location: Delivered mill Alabama
Unit: USD per gross ton
Publication: Monthly, typically before the 10th
Notes: ISRI Code: 207

The original notice for this consultation period was published on August 9, 2022

To provide feedback on this proposal, or if you would like to provide price information by becoming a data submitter to the ferrous scrap assessments, please contact Sean Barry at pricing@fastmarkets.com. Please add the subject heading: FAO: Sean Barry re: Alabama bundles/busheling prices.

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

What to read next
Fastmarkets will amend the specifications of its existing price assessments for Europe/US lithium spot battery-grade and technical-grade lithium hydroxide and carbonate to remove the US footprint, and will launch weekly price assessments for spot battery-grade and technical-grade lithium hydroxide and carbonate for the United States and Canada on Thursday April 4.
The March 2024 monthly averages were published today based on the index values of March 1, 8, 15 and 22.
Fastmarkets has corrected its MB-STE-0034 steel domestic plate 8-40mm, exw Northern Europe and MB-STE-0035 Steel domestic plate 8-40mm, exw Southern Europe assessments, which were published incorrectly on Wednesday March 27.
The publication of Fastmarkets’ daily assessment for aluminium P1020A premium, ddp Midwest US was delayed on Wednesday March 27. Fastmarkets’ pricing database has been updated.
Fastmarkets' holiday pricing schedule for 2024 has been updated to reflect the change in the pricing frequency of its mixed hydroxide precipitate (MHP) cif China, Japan and South Korea (CJK) prices.
Fastmarkets is inviting feedback from the industry on the pricing methodologies for its steel hot-rolled coil index domestic, exw Northern Europe, €/tonne (MB-STE-0028) and steel hot-rolled coil index, fob mill US Midwest, $/cwt (MB-STE-0184) as part of its annual methodology review process.