Metal Bulletin Scrap Index CFR Turkey
Metal Bulletin is the leading independent supplier of market intelligence and pricing to the global metals industries.
MB’s scrap index is the most accurate representation of the scrap import market into Turkey, and utilizes the established and leading MB Index methodology.
The index is based on actual transactions, which are reported to MB by any market participant who is conducting trades on a CFR Turkey basis. MB is totally impartial, and seeks to report an open and transparent representation of the market. MB has no financial or other interest in the level or direction of the Index.
The details below are the base target specification. Material that differs from the base specification but falls into other grades will be normalized back to the base specification grade of HMS 1&2 (80/20 mix), based on the value-in-use applied by the market for each material. The main grades normalised are listed in the specifications. Other grades may be added as the market develops or at the request of market participants if sufficient tonnage is seen.
In addition, trades will be normalised for freight based on port of delivery. Trades will be adjusted for delivery into Turkish ports other than Iskenderun before normalization for grade. The freight normalisation will be based on the relevant freight route, with data supplied by a leading global freight broker.
Data will be collected from Monday 08:00 until Friday 11.00am London time. The index will be published on Friday at 12.00 London time. Data will be collected from all market participants who are engaged in conducting ferrous scrap business on a CFR Turkey basis, and will not be restricted to a panel or selected group of price setters.
Three sub-indices will be created, based on data received from producers, traders/brokers, and consumers. The sub-indices will be based on a tonnage weighted average of the normalised (grade and freight) trade information, and the three indices combined with equal weighting to ensure that the market is fairly represented across all participants. Only the final index will be published.
All data points that fall greater than 4% away from the calculated index will be excluded, and the index recalculated to a single iteration. Outliers will be investigated, and attempts to influence the index unfairly will result in the data provider being warned or excluded.
The number of trades available for use in the Index will of course vary depending on the market conditions prevailing, but MB will seek to utilize as many trades as possible. Where insufficient transactions have taken place in the market, assessments, bids and offers from market participants will be included in the index calculation.
Data will be submitted in a secure manner by phone and email. All correspondence will be stored by Metal Bulletin. The data collection and index calculation will be auditable by a recognized and accepted third party auditor.
The normalization coefficients for different grades will be updated four times a year at the end of each quarter and will be based on data collected over the previous three months.
In the event of public holidays in the UK, the index will be published on the previous working day. As a result of technical difficulties or other unforeseen problems, the index will be published from our Singapore office or New York office, as appropriate.
Click here to download the methodology as a PDF
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