AMM's Midwest Ferrous Scrap Index Methodology

Jul 03, 2012 | 09:02 AM |

Tags  scrap, ferrous scrap, No. 1 heavy melting scrap, No. 1 busheling, shredded steel scrap, HMS, methodology

Beginning June 11, 2012, AMM began publishing a new Midwest Ferrous Scrap Index for three grades: No. 1 heavy melting scrap, No. 1 busheling and shredded steel scrap. The new Index will be published online at 4 p.m. on the 10th of each month or–if the 10th falls on a public holiday or weekend–on the next working day, as well as in the daily paper the following day. The Index will run in addition to the existing appraised ferrous scrap prices for U.S. and Canadian cities and will be calculated based on transaction data received that is then tonnage-weighted and normalized to produce a final Index value. Detailed documentation relating to our Index methodology is below.

AMM U.S. Midwest Ferrous Scrap Index Methodology Guide

AMM is the leading independent supplier of market intelligence and pricing to the North American metals industries and publisher of the widely-used reference prices for scrap.

AMM’s U.S. Midwest Ferrous Scrap Index builds upon the publication’s extensive experience in reporting scrap prices in a wide range of grades and locations, and utilizes an established and leading index methodology.

AMM U.S. Midwest Ferrous Scrap Index

The AMM U.S. Midwest Ferrous Scrap Index has been developed to provide a fair, transparent and objective representation of the market.

The AMM Index methodology is a tonnage-weighted calculation of transactions that have been normalized to our base specification using value-in-use (VIU) curves as defined by the market.

Our methodology aims to use the input of high-quality data. AMM has been reporting on the U.S. scrap market for over 100 years and, therefore, has a unique level of experience and knowledge in providing benchmark prices to the industry.....