Platts proposes to expand ferrous scrap coverage in the US

S&P Global Platts proposes to launch new ferrous scrap assessments in the Southern US to complement its existing coverage and to increase the publication frequency for four existing US Midwest scrap prices.

These changes were initially proposed Feb. 25, as seen here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/022521-platts-proposes-to-expand-ferrous-scrap-coverage-in-the-us

The proposed changes reflect a growing scrap demand in the Southern US and aim to better align Platts pricing frequency with the current market buying patterns.

Alongside these proposed updates, Platts also proposes to update the payment terms for existing US domestic scrap assessments to net-45 day payment terms from net-30 day payment terms.

All the proposed changes would come into effect Monday May 24, 2021.

NEW SOUTHERN US ASSESSMENTS: Platts proposes to start publishing two new scrap assessments in Southern US. The prices would reflect shredded scrap and #1 busheling in a minimum 1,000 long ton parcels, delivered to Southern mill within 30 days on net-45 day payment terms.

The new prices for #1 busheling and shredded scrap would reflect ISRI 207 and ISRI 210-211 quality, respectively.

The prices would reflect repeatable value for spot deliveries to Arkansas, Tennessee, Mississippi, and Alabama. Information about deliveries within a wider Southern US region, but outside stated locations would be normalized back to Platts specifications, where applicable.

The new assessments would follow Platts Market-On-Close methodology principles, which are described here https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf.

The new prices would be published on the real-time Platts Metals Alert on fixed page 1318, 1362, Steel Markets Daily, Steel Raw Materials Monthly, Global Market Outlook, and World Steel Review.

PUBLICATION FREQUENCY: S&P Global Platts proposes to move four existing US Midwest ferrous scrap prices to a daily publication schedule to better capture the intra-week price movements and to align their frequency with the newly proposed assessments, as well as update the payment terms to net-45 day payment terms. This change would affect the Platts benchmark US Midwest shredded scrap index (FEMWD00), US #1 busheling scrap (SB01001), US HMS 1/2 scrap (SB01135), and US plate and structural scrap (SB01174) assessments. Currently the shredded scrap index has a daily/weekly frequency depending on the time within the assessment month, while the other three assessments are published weekly, and currently reflect net-30 day payment terms.

Summary of the proposed changes:

New Assessments

Proposed Changes to Existing Assessments

The changes would not affect the coverage of the seaborne market, and Platts would continue publishing FOB US East Coast assessments of shredded scrap and HMS on a daily basis.

All Platts ferrous scrap assessments reflect spot values at 3:30 pm Eastern Standard Time.

Platts welcomes feedback on the proposed changes and all other aspects of its ferrous scrap methodology in the US. Please submit any feedback, comments or questions about this proposal to PL_Americas_Metals@spglobal.com and pricegroup@spglobal.com by April 23, 2021.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.