Proposal to increase publication frequency of some UK, Europe, Turkey steel scrap prices, change to indices

A consultation period for the frequency change started on May 12. This period has now been extended in order to receive feedback regarding the methodology adjustment.

The prices in question are:
• MB-STE-0100 Steel scrap, HMS 1&2 (80:20 mix), export, fob main port UK, $ per tonne
• MB-STE-0099 Steel scrap shredded, export, fob main port UK, $ per tonne
• MB-STE-0095 Steel scrap shredded, import, cfr delivered Turkish port, $ per tonne
• MB-STE-0420 Steel scrap, HMS 1&2 (80:20 mix), fob Rotterdam, $ per tonne.

Increasing the frequency of assessment of these prices is necessary to bring adequate transparency to these liquid and dynamic markets. The move will bring these prices into line with Fastmarkets’ key daily Turkey HMS 1&2 (80:20) import indices, for both Europe- and US-origin material.

The prices in question are currently published weekly on Fridays. Under the proposed changes, they will be priced daily at 4pm London time.

A key aspect of the change from assessments to indices will be that the prices will be published as a single figure, rather than a range. Fastmarkets’ index methodology applies a tonnage-weighted model and allows for different grades and geographies to be normalized.

Currently, of the prices in question, only MB-STE-0420 Steel scrap, HMS 1&2 (80:20 mix), fob Rotterdam, $ per tonne, is priced as an index. The pricename for MB-STE-0095 will also be amended to include the incoterm CFR Turkey.

For the full steel scrap index methodology, follow this link.

Minimum tonnages for the concerned prices will also be aligned to 5,000 tonnes for all prices, the standard in the international bulk steel scrap market.

The proposed specifications will be as follows:

MB-STE-0100 Steel scrap HMS 1&2 (80:20 mix) export, fob main port UK, $ per tonne
Quality: HMS 1&2 (80:20 mix) compliant with ISRI specifications 200-206. Grades normalized: Shredded, HMS 1&2 (70:30), HMS 1&2 (90:10), HMS 1, Bonus Grade, P&S, and A3 material
Quantity: Min 5,000 tonnes
Location: FOB UK
Timing: Up to 6 weeks
Unit: USD per tonne
Payment terms: LC, bank transfer
Publication: Daily, 4pm London time.

MB-STE-0099 Steel scrap shredded export, fob main port UK, $ per tonne
Quality: Shredded material, compliant to ISRI specifications 210-212. Grades normalized: HMS 1&2 (80:20 mix), HMS 1&2 (70:30 mix), HMS 1&2 (90:10 mix), HMS 1, Bonus Grade, P&S, and A3
Quantity: Min 5,000 tonnes
Location: FOB UK
Timing: Up to 6 weeks
Unit: USD per tonne
Payment terms: LC, bank transfer
Publication: Daily, 4pm London time.

MB-STE-0095 Steel scrap shredded import, cfr Turkey, $ per tonne
Quality: Shredded material, compliant to ISRI specifications 210-212. Grades normalized: HMS 1&2 (80:20 mix), HMS 1&2 (70:30 mix), HMS 1&2 (90:10 mix), HMS 1, Bonus Grade, P&S, and A3
Quantity: Min 5,000 tonnes
Location: CFR Turkey
Timing: Up to six weeks
Unit: USD per tonne
Payment terms: LC, bank transfer
Publication: Daily, 4pm London time
Notes: Normalized to Northern Europe-origin.

MB-STE-0420 Steel scrap HMS 1&2 (80:20 mix), fob Rotterdam, $ per tonne
Quality: HMS 1&2 (80:20 mix), NE origin compliant to ISRI specifications 200-206. Grades normalized: shredded, HMS 1&2 (70:30 mix), HMS 1&2 (90:10 mix), HMS 1, Bonus Grade, P&S, and A3 material
Quantity: Min 5,000 tonnes
Location: FOB Rotterdam, Netherlands
Timing: Within six weeks
Unit: USD per tonne
Payment terms: Cash, other payment terms normalized to Rotterdam
Publication: Daily, 4pm London time
Notes: Bulk carrier from Northern Europe.

These prices are part of Fastmarkets’ scrap package.

The consultation period for these proposed amendments started on Monday May 12. Following publication of this update, it will now end on Wednesday June 25. The amendments will then take place, subject to market feedback, on Monday June 30.

To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to these prices, please contact Ross Yeo by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Ross Yeo re: steel scrap prices.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

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