From Tuesday February 26, Fastmarkets will update the normalization coefficients of the Turkey and Rotterdam ferrous scrap indices once per month instead of once per quarter.
The indices to which this proposed change relates are the
HMS 1&2 (80:20), Northern Europe-origin material, cfr Turkey index; the
HMS 1&2 (80:20), USA-origin material, cfr Turkey index; and the
HMS 1&2 (80:20), Northern Europe-origin material, fob Rotterdam index.
The change follows a market consultation and has been enacted to ensure that the indices accurately capture the constantly changing value-in-use relationship of different grades of scrap from different origins.
Coefficients are used to normalize the price data of material that differs from the base specification but are within the range specifications listed in Fastmarkets' methodology and are calculated using regression analysis of the collected data points. The analysis allows Fastmarkets MB to capture the value-in-use applied by the market to different materials and normalize to a single specification.
To provide feedback on these indices or if you would like to provide price information by becoming a data submitter to this indices, please contact Cem Turken by email at:
pricing@fastmarkets.com. Please add the subject heading 'FAO: Cem Turken, re: Turkey ferrous scrap index normalization coefficients'.
To see all Fastmarkets'
pricing methodology and specification documents, please go to
https://www.metalbulletin.com/prices/pricing-methodology.html.