Fastmarkets has introduced a suite of steel-to-scrap and raw material pricing differentials for the US market, effective June 9. This launch provides a single reference price indicating the spread between finished hot-rolled steel products and key scrap and raw materials used in their production.
The new pricing methodology focuses on benchmark differentials, such as the Steel Hot-Rolled Coil Index relative to No. 1 Busheling scrap in Chicago, assessed on an FOB mill basis in the US Midwest. The differential is published daily at 5 pm EST, offering market participants a clearer view of the cost relationship between steel production and raw material inputs.
The reference prices consider commercial steel grades under ASTM A1011 specifications, alongside clean steel scrap—excluding auto body stock and coated or enamelled materials. This initiative is expected to enhance transparency in steel pricing and provide manufacturers, suppliers, and investors with a more reliable basis for assessing market trends.
Fastmarkets' pricing model ensures more accurate evaluations of steel manufacturing costs, helping industry players navigate price fluctuations in raw material sourcing and finished steel production. The launch comes amid ongoing volatility in steel and scrap markets.
