Proposal to adjust Detroit bundles, busheling prices decision [update]

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

The price for ferrous scrap No1 bundles in Detroit has settled at $420 per gross ton this month, representing a $70-per-ton market decrease and a $65-per-ton non-market adjustment upward.

The price for ferrous scrap No1 busheling in Detroit has settled at $425 per gross ton, representing a $70-per-ton market decrease and a $60-per-ton non-market adjustment upward.

The specifications for the affected scrap grades are as follows:

MB-STE-0271 Steel scrap No1 bundles, consumer buying price, delivered mill Detroit
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, Detroit
Unit: USD per gross ton
Publication: Monthly, typically before the 10th
Notes: ISRI Code: 208

MB-STE-0272 Steel scrap No1 busheling, consumer buying price, delivered mill Detroit
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, Detroit
Unit: USD per gross ton
Publication: Monthly, typically before the 10th
Notes: ISRI Code: 207

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

The original notice for this proposal was published on Friday June 10, 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: Detroit bundles/busheling prices.

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

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