TSI launches US domestic scrap price
The Steel Index (TSI) is launching its US domestic ferrous scrap price index tomorrow, February 25, 2011. The reference price is for shredded obsolete scrap, delivered US Midwest mill. It will be published weekly, each Friday at 7:30am EST (12:30pm GMT).
US ferrous scrap prices are a key indicator for world steel and scrap prices. Scrap is a critical raw material in the steel-making process, typically accounting for around 80% of electric arc furnace (EAF) route costs and 5-10% of blast furnace route costs. Scrap prices are also notoriously volatile.
The US is the world’s largest ferrous scrap exporter and the third largest steel producer, with over 60% of output via EAFs. As such, US ferrous scrap prices are a barometer closely-monitored by the steel industry and economists worldwide, as well as key scrap importing regions such as Turkey, India and Asia.
“TSI has completed a ten-month consultation process with the industry before launching this US scrap index. We wanted to be absolutely sure this index represented the market accurately,” explains Jeff Wickert, TSI business development manager in North America. “We employ TSI’s distinctive data-driven methodology, collecting transaction prices from all relevant points in the supply chain and volume-weighting the sample.”
The US domestic ferrous scrap index is the third in the TSI scrap series to go live, complementing its Turkish and Indian scrap import reference prices.
“We are delighted to add the US domestic scrap index to our coverage,” says Steven Randall, Managing Director of TSI. “Given the volatility and importance of scrap prices to the steel industry, the need for a reliable US scrap index that the market can trust has been pressing. With the launch of TSI’s coking coal index series following shortly, TSI’s coverage of the ferrous supply chain will soon be largely complete.”