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PRICE NOTICE: Shredded scrap

Feb 25, 2018 | 02:02 PM |


American Metal Market is proposing to increase the frequency of its shredded scrap index assessment to the 10th of each month and every Friday, and to expand the footprint covered under the Midwest designation, following substantial market feedback. The first publishing day would be Friday May 4, 2018.

The index - which is currently assessed on a monthly basis only - would be published at the end of the working day on the 10th of each month and every Friday. It would reflect the latest spot transactions captured by American Metal Market.

The increased frequency of the assessment would add transparency to the market if spot trades are recorded and demonstrate stability in the absence of trade. The index would be designed to incorporate intra-month transactions that might provide an insight into the direction of the market prior to the typical monthly settlement on the 10th.

The vast majority of deals take place early in the month, and American Metal Market publishes the monthly settlement prices for individual grades and regions then. However, a small number of trades take place throughout the month, and American Metal Market aims to capture these transactions. Trades recorded later in the month will be cumulatively weighted against trades recorded earlier in the month. When no deals are reported, the index will be published as unchanged.

American Metal Market first proposed to increase the frequency of the index assessment in mid-December.

Proposed methodology (changes to existing methodology in bold)

Shredded scrap
Price: US dollars per gross ton
Pricing Point: Delivered Midwest mill
Delivery Points: Any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and Ohio
Specifications: ISRI Grade 211
Shredded scrap
Homogeneous iron and steel scrap magnetically separated, originating from automobiles, unprepared No. 1 and No. 2 steel, miscellaneous baling and sheet scrap. Average density 70 lbs per cu ft
Material Origin: All origins
Trade Size: 500 gross tons
Delivery Window: Within 30 days
Payment Terms: Net 30 days post delivery
Publication Date: 10th of each month (or following working day) and weekly, Friday (or following working day)
Publication Time: Between 3:30 and 5pm New York time

Existing methodology (specifications to be changed in bold)

Shredded
Price: US dollars per gross ton
Pricing Point: Delivered Midwest mill
Delivery Points: Any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and NW Ohio
Specifications: ISRI Grade 211
Shredded scrap 
Homogeneous iron and steel scrap magnetically separated, originating from automobiles, unprepared No.1 and No. 2 steel, miscellaneous baling and sheet scrap. Average density 70 lbs per cu ft
Material Origin: All origins
Trade Size: 500 gross tons
Delivery Window: Within 30 days
Payment Terms: Net 30 days post delivery
Publication Date: 10th of each month (or following working day)
Publication Time: 4pm New York time

To provide feedback regarding these changes or if you would like to provide price information by becoming a data submitter, please contact North American steel and ferrous scrap editor Thorsten Schier or North American price development manager Grace Lavigne by email at pricing@metalbulletin.com. Please add the subject heading FAO: Thorsten Schier or FAO: Grace Lavigne, re: Shredded.