Fastmarkets will 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.
Steel Dynamics Inc's Butler, Indiana, steel mill will be added 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. Changes will be included starting with the May ferrous scrap price assessment.
The decision comes in response to Gerdau Special Steel North America idling melting and rolling operations at its special bar quality mill in Jackson, Michigan, while U.S. Steel Corp indefinitely idled the steelmaking end of its Great Lakes Works near Detroit. Both occurred in April.
The addition of the Butler 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 since the mill generally moves in tandem with Detroit.
Fastmarkets’ original 30-day consultation notice proposing the realignment was published on Friday March 13, 2020.
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.