Fastmarkets is proposing to expand the pricing footprint for its steel scrap, consumer buying price, delivered mill Detroit, price series following idling announcements by two producers in the region that will diminish the liquidity and number of mills making up the current assessment.
Gerdau Special Steel North America is idling melting and rolling operations at its special bar quality mill in Jackson, Michigan, while U.S. Steel plans to indefinitely idle the steelmaking end of its Great Lakes Works. Both are set to occur in April.
Fastmarkets is proposing to add Steel Dynamics' Butler, Indiana, steel mill to the Detroit footprint for the monthly ferrous scrap consumer buying price assessment. The flat-rolled mill is located between Chicago and Detroit and is currently an outlier to both cities.
The addition of the mill is not expected to have a substantial impact on prices or force a permanent, non-market adjustment. It will only serve to boost liquidity as the Butler mill generally moves in tandem with Detroit.
The 30-day consultation period for this proposal will end on Monday April 27, with an update to be published on Thursday April 30. Changes would be included starting with the May assessment of ferrous scrap prices.
To provide feedback on this change or if you would like to provide price information by becoming a data submitter for these prices, please contact Lisa Gordon by emailing firstname.lastname@example.org. Please add the subject heading FAO: Lisa Gordon re: Detroit ferrous scrap expansion.
To see all of Fastmarkets' pricing methodology and specification documents for ferrous scrap prices, click here.