Steel scrap buyers and sellers – now’s the time for action

The massive swings in steel scrap prices have created a new world of increased profits, greater risks, more stress and new opportunities for those in the steel scrap industry. Now, what’s needed? We think it’s an authoritative steel scrap “reference” price – a benchmark price – that helps you to navigate through the trials and tribulations of this exciting and previously-not- imagined world.

WSD has already made major progress in creating a number of steel scrap reference prices as a component of its SteelBenchmarker™ system. Twice each month since February 2007, we’ve been publishing a USA benchmark price for #1 heavy melting, shredded and #1 busheling scrap. These benchmark prices are based on inputs from several dozen groups. The next milestone for us is to boost to at least 80 the number of “price assessment providers”; each additional participant makes our steel scrap benchmark prices even more robust and resistant to manipulation.

Some reasons for you to sign up as a SteelBenchmarker™ price assessment provider:

1. You need both a mid-month and a month-end benchmark price for steel scrap because industry conditions are changing so fast – which is what we provide.

2. The SteelBenchmarker™ approach is not vulnerable to the influence of financial buyers and sellers – i.e. speculators. Why? Only steel scrap buyers and sellers are providing the price inputs for our system.

3. The indexing methodology is secure and trustworthy. All prices are confidential, collected by a third party, analyzed by computer and cannot be tied back to the provider by anyone. In addition, SteelBenchmarker™ methodology has been held up to scrutiny by Covington & Burling (one of the most experienced law firms in the nation in the field of anti-trust law and anti-competitive behavior). We follow the best practices and compliance guidelines as set forth by the Federal Trade Commission.

4. The SteelBenchmarker™ steel scrap prices, some day, may be used to settle monthly contracts on a Futures Exchange. At that point, granted a sizable volume of daily trading activity, you would be able to buy and sell steel scrap futures on a financial transaction basis. (Note: In financial transactions, there is only a cash settlement; there is no physical delivery or inventory held at warehouses.)

5. Once there is active trading in steel scrap futures along a forward curve (let’s say one to eighteen month’s ahead) you will be able to hedge the steel scrap price risk. You will have the option to lock in your profit margin at the time of actual purchasing or selling the steel scrap.

6. Once the price risk in your inventory is hedged on a futures market, you will be able to secure loans on your inventory on a more favorable basis. Lenders will have less aversion to providing you loans on an attractive basis because they will perceive less risk in making you the loan.

7. It is easy to sign up. Just log into www.steelbenchmarker.com.

As a SteelBenchmarker™ price assessment provider, you will receive FREE twice per month prices for up to 19 products, including: a) steel scrap for USA for #1 heavy melt, shredded and #1 busheling; and b) hot-rolled band, cold-rolled coil, rebar and plate for the USA, Europe, China and the World export market.