Platts is expanding ferrous scrap coverage in the US

After a period of market feedback, S&P Global Platts has decided to launch new ferrous scrap assessments in Southern US to complement its existing coverage and to increase the publication frequency for four existing US Midwest scrap prices.

Alongside these updates, Platts will also change the payment terms for existing US domestic scrap assessments to net-45 days from net-30 days.

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

These changes were initially proposed Feb 25 (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/022521-platts-proposes-to-expand-ferrous-scrap-coverage-in-the-us) and refined further in the subscriber note published on Apr 9 (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/040921-platts-proposes-to-expand-ferrous-scrap-coverage-in-the-us).

NEW SOUTHERN US ASSESSMENTS: Platts will start publishing two new scrap assessments in the Southern US in response to growing scrap demand in the Southern US. The prices will 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 will reflect ISRI 207 and ISRI 210-211 quality, respectively. The prices will 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, will be normalized back to Platts specifications, where applicable. The new assessments will 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 will 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 AND PAYMENT TERMS: S&P Global Platts will 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 new assessments in the Southern US. Platts has also decided to update the payment terms to net-45 days. These changes will 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. Previously, the shredded scrap index had a daily/weekly frequency depending on the time within the assessment month, while the other three assessments were published weekly, and reflected net-30 day payment terms.

Summary of the changes:

The changes will not affect the coverage of the seaborne market, and Platts will 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.

Please all comments to PL_Americas_Metals@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.