Adjustment to Chicago turnings price

The price for ferrous scrap turnings in Chicago is $130 per gross ton, which represents a $20 per gross ton market increase for December and a $45 per gross ton upward non-market adjustment.

The price had previously been assessed at $65 per gross ton for the November settlement.

Although Fastmarkets believes that its monthly trends have been correct, there has been feedback from the market that ferrous scrap turnings in Chicago no longer reflect actual transaction prices, owing in part due to market dislocations from the peak of the Covid-19 pandemic last year.

The original notice for the 30-day consultation was published October 19.

The specifications for the affected scrap grade are as follows:

MB-STE-0234
Assessment: Machine shop turnings
Quality: Clean steel or wrought iron turnings, free of iron borings, nonferrous metals in a free state, scale, or excessive oil. May not include badly rusted or corroded stock.
Location: FOB US/Canada, specified city
Unit: USD per gross ton (Canadian cities in Canadian currency/net tons)
Publication: Monthly
Notes: ISRI Code: 219

To provide feedback on this proposal, or if you would like to provide price information by becoming a data submitter to the ferrous scrap assessments, please contact Sean Barry at pricing@fastmarkets.com. Please add the subject heading: FAO: Sean Barry re: Chicago turnings price.

To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.