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