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Price Assessment

US Midwest shredded steel scrap

  • What is the US Midwest shredded scrap price?
  • How Platts assesses shredded scrap
  • Evolution of US shredded scrap assessment

What is the US Midwest shredded scrap price?

Platts TSI Shredded scrap delivered US Midwest (FEMWD00) reflects the tradeable spot price for shredded ferrous scrap in the US Midwest market.

The assessment reflects shredded scrap steel according to ISRI 211 classification or equivalent, specifying homogenous and magnetically separated iron and steel scrap originating from automobiles, unprepared No. 1 and No. 2 steel and miscellaneous baling and sheet scrap, with an average density of 70 lb/square foot.

Other grades of steel scrap are normalized to ISRI211 where appropriate.

The assessment reflects shredded scrap transactions in the US Midwest market, including but not limited to major markets in Chicago, Detroit and St. Louis and region areas including Indiana, Iowa and Ohio.

The assessment process considers trade data in the United States: transactions from outside of the Midwest can be normalized where appropriate based on prevailing market fundamentals.

The assessment reflects shipments in minimum lots of 1,000 long tons on 30-day payment terms, for delivery 0-30 days after the date of assessment.

The US Midwest Shredded Scrap steel price is assessed in US dollars on a per long ton basis. The daily assessment timestamp is 3:30 p.m. Eastern Standard Time.

The Platts US Midwest Shredded Scrap price assessments are available in these services.

How Platts assesses shredded scrap

The US scrap market trades using a "buy-week” period that can take place towards the end of the month of delivery minus one (M-1) or at the start of the delivery month (M).

These periods are in any case the times that tend to see the highest volume of trade activity.

As a consequence, Platts values the market every day in the last week of M-1 and the first week of M.

The M-1 week is defined as the last week that begins (on a Monday) with a date in M-1; the M week is defined as the first week that starts (on a Monday) with a date in M.

Prices are then assessed weekly (on Fridays) in M until the last week begins, when daily publication would resume.

This value is calculated as a volume-weighted average.

Data is collected from active market participants across the supply chain in the North American scrap market, including trades, bids and offers on a delivered Midwest basis.

Data is normalized to reflect the value of the commodity on a given day, for typical order quantities, commodity specifications and standard delivery and payment terms.

We also assess US East Coast and West Coast scrap on a daily basis.

Evolution of US shredded scrap assessment

Platts began assessing US shredded scrap metal on February 7, 2005.

After the July 1, 2011 merger with Steel Business Briefing, the Platts assessment was merged with the existing similar Steel Business Briefing assessment Midwest shredded scrap assessment.

On November 1, 2017 Platts merged its US scrap price assessments with The Steel Index equivalents.

This meant that Platts started to calculate the delivered mill scrap prices in the US using a volume-weighted average, rather than a market-on-close assessment approach.

Due to the diverse geographical spread of steel mills inland in the US a volume-weighted average calculation is used rather than an assessment approach that would seek to normalize to a single basis point.


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