The proposal comes in response to forthcoming changes to the busheling futures contract on the CME, which is currently settled against Fastmarkets’ steel scrap No1 busheling index. The change will have the exchange settle new contracts against Fastmarkets’ assessment of the Chicago No1 busheling price. This will be available for trading on the CME Globex electronic platform and for submission for clearing via CME ClearPort on Monday December 16, 2024, pending all relevant Commodity Futures Trading Commission (CFTC) regulatory review periods.
The code, name and current specifications for the affected markets are as follows:
MB-STE-0423 – Steel scrap shredded, index, delivered Midwest mill, $/gross ton
Quality: ISRI Grade 211 – shredded scrap Homogeneous iron and steel scrap magnetically separated, originating from automobiles, unprepared No1 and No2 steel, miscellaneous baling and sheet scrap. Average density 70 pounds per cubic foot.
Quantity: Min 500 gross tons
Location: Delivered US Midwest mill – any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and NW Ohio Timing: Within 30 days
Unit: US dollars per gross ton
Payment terms: Net 30 days post delivery
Publication date: 10th of each month by 4pm New York time (or following working day)
Notes: All origins
MB-STE-0424 – Steel scrap No1 heavy melt, index, delivered Midwest mill, $/gross ton
Quality: ISRI Grade 200 – No1 heavy melting steel. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 24 inches (charging box size) prepared in a manner to insure compact charging ISRI Grade 202 – No1 heavy melting steel 5 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 18 inches (charging box size) prepared in a manner to insure compact charging.
Quantity: Min 500 gross tons
Location: Delivered Midwest mill – any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and NW Ohio
Timing: Within 30 days Unit: US dollars per gross ton
Payment terms: Net 30 days post delivery
Publication: 10th of each month by 4pm New York time (or following working day)
Notes: All origins
MB-STE-0882 – Steel scrap No1 busheling, indicator, delivered Midwest mill, $/gross ton
Quality: Institute of Scrap Recycling Industries (ISRI) Grade 207 – No1 busheling Ferrous busheling. Compliant to ISRI Specifications 7 No1 busheling. Clean steel scrap, maximum size 2 feet by 5 feet, including new factory busheling (sheet clippings, stampings, etc). May not include old auto body and fender stock. Free of metal coated, limed, vitreous enameled and electrical sheet containing more than 0.5% silicon.
Quantity: Min 500 gross tons
Location: Delivered US Midwest mill – any mill in Illinois, Indiana, Michigan, Wisconsin, Iowa and northwest Ohio
Timing: Within 30 days Unit: US dollars per gross ton
Payment terms: Net 30 days post delivery
Publication: Daily from 4-5pm New York time
The realignment does not include the following grade:
MB-STE-0422 – Steel scrap No1 busheling, index, delivered Midwest mill, $/gross ton
Fastmarkets will continue to publish MB-STE-0422 Steel scrap No1 busheling, index, delivered Midwest mill throughout 2025 to support existing contracts settled against that index.
These prices are a part of the Fastmarkets scrap package.
The consultation period for this discontinuation will end 30 days from the date of this pricing notice, on Friday December 13. An update to this notice will be published on that day. Subject to market feedback, the proposed changes would take place at the start of January 2025.
All short-term forecasts associated with these prices produced by the Fastmarkets research team, if any, will also be discontinued.
To provide feedback on this proposal to discontinue, or if you would like to provide price information by becoming a data submitter to these prices, please contact Sean Barry by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Sean Barry, re: US ferrous scrap shredded, heavy melt indices, busheling indicator.”
Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.
To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.
