American Metal Market has completed the sixth assessment of its expanded Chicago methodology, which includes the addition of three Indiana steel mills and one Iowa mill.
The differentials between the "Chicago - expanded" and "Chicago - historical" footprints are listed in the table below:
Recognizing that contracts need to be adjusted, American Metal Market will continue to publish, for a period of six months through June 30, 2018, two sets of prices: "Chicago - expanded footprint“ and "Chicago - historical footprint."
Effective July 1, 2018, the words "historical" and "expanded" will be removed and "Chicago - expanded" will permanently replace "Chicago - historical." The price will be noted as "Chicago," with the additional mills included in the price assessment.
Also effective July 1, 2018: For contracts that are not adjusted during the six-month period when two sets of prices are posted, a non-market adjustment notice specifying the change in prices from the expansion will be issued for Chicago. This notice will specify that the non-market adjustment is between the two price points and not a monthly price move.
If you have any questions or comments about the proposed change, please email steel and ferrous scrap editor Thorsten Schier at firstname.lastname@example.org. Please add the subject heading FAO: Thorsten Schier, re: Ferrous Scrap.