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  • February 11, 2020

    March 2020 Scrap Surcharge Announcement

    To You, Our Valued Customer: Effective with shipments January 1, 2007 the scrap surcharge will be calculated monthly using a base of $115.00/ton. It will be based on the average price for # 1 bundles as published in the AMM on the 10th of each month for Chicago, Cleveland, and Pittsburgh. As of February 10, 2020 the three-city average for No.1 Bundles was $292.00 ton. Using our revised method the March 2020 scrap surcharge for SBQ product is $177.00/ton ($8.85/cwt). This represents a decrease from February 2020. We appreciate your business and continued support. Sincerely,

    Jeff Cordill Sales & Marketing Manager

  • February 11, 2020

    March 2020 Alloy Surcharge Announcement Effective March 1, 2020 alloy surcharges on Ferromolybdenum, Nickel, LC & HC ferrochrome, HC ferromanganese and Ferrovanadium are outlined as follows. Alloy surcharges will be calculated monthly and charged as a separate line item to each invoice based on the steel grade.

    • The base cost or trigger point for Ferromolybdenum is $4.00/lb, Nickel is $3.50/lb, Ferrovanadium is $6.00/lb, HC Ferrochrome is $0.50/LB, LC ferrochrome is $0.75/lb, and HC ferromanganese $0.40/lb.

    • The yield factor is 85% on Ferromolybdenum, Nickel, Ferrovanadium, and HC ferromanganese, 70% on Ferrochrome.

    • The source of the current market price for Ferromolybdenum, Ferrovanadium, Ferrochrome, and HC Ferromanganese is the mid-point in the range of CRU, as published on the Friday closest to the 10th of the preceding month.

    • The source of the market price of nickel is the London Metal Exchange average cash buyer average for the first ten days of the preceding month.

    • The alloy surcharges are calculated by using these published prices, less the base cost, divided by the yield factor, then multiplied by the mid-point of the alloy bearing grade range. This cwt surcharge is then converted to a price per ton.

    • The HC Ferromanganese surcharge is based on the minimum weight addition for all grades.

    *LC

    ferrochrome HC

    ferrochrome Ferro

    molybdenum

    Nickel Ferro

    vanadium HC

    ferromanganese February 7th Index Value 1.73 $.85 $10.68 $5.84 $12.94 $.64

    Base Value $0.75 $0.50 $4.00 $3.50 $6.00 $0.40 Yield Factor 70% 70% 85% 85% 85% 85% March 2020 Surcharge/lb. $1.39 $.50 $7.85 $2.75 $8.16 $0.13cwt

    The calculations shown refer only to standard AISI grades and should be used as a guideline only. Actual surcharges will be based on individual specifications and their respective alloy content. To address the volatility and unprecedented costs associated with Ferrochrome, Ferromolybdenum, Nickel, Ferrovanadium and HC ferromanganese, effective July 1, 2007 we will review alloy surcharges on the 10th of each month for prompt orders. Prompt orders are defined as orders received and acknowledged after the 10th of the month to be produced and shipped in the current month. A deviation greater than 5% from our published index values, for the month, will result in applying the new surcharge value for the balance of the month. *LC ferrochrome is specified for certain Melt Grades and will be priced accordingly.

  • Alloy Surcharge Rates as of 03/01/2020

    Grade Alloy Value

    Nominal Surcharge CWT CWT

    Total

    $0.76 Nickel .2751022M Ni $0.76

    $1.02 Ferrovanadium .1251033V $1.02

    $0.24 Ferrovanadium .0301045 V FG $0.24

    $0.49 Ferrovanadium .06010V18 $0.49

    $0.82 Ferrovanadium .10010V40 QL2 $0.82

    $0.78 Ferrovanadium .09510V43 B156 $0.78

    $0.82 Ferrovanadium .10010V45 $0.82

    $0.82 Ferrovanadium .10010V45 QL2 $0.82

    $1.22 Ferrovanadium .15010V45 RES10172 $1.22

    $0.24 Ferrovanadium .03010V50 $0.24

    $0.24 Ferrovanadium .0301141 V FG $0.24

    $0.24 Ferrovanadium .0301141 V FG QL2 $0.24

    $0.24 Ferrovanadium .0301144 V FG $0.24

    $0.73 Ferrovanadium .09011V41 $0.73

    $0.73 Ferrovanadium .09011V41 QL2 $0.73

    Ferrovanadium .07013% Chrome $0.57 $18.99 Ferrochromium LC 13.250 $18.42

    $18.42 Ferrochromium LC 13.25013%Cr/420 Mod $18.42

    $0.61 Ferrovanadium .0751518-7 $0.61

    Ferrovanadium .0201518M $0.16 $0.27 Ferrochromium HC .220 $0.11

    $0.12 Ferrovanadium .0151522 MOD $0.12

    $0.61 Ferrovanadium .0751522M $0.61

    $0.20 Ferrochromium HC .4001537HC $0.20

    Ferrovanadium .1001538MV $0.82 $0.90 Ferrochromium HC .150 $0.08

    $0.14 Ferrochromium HC .2801590 UHC $0.14

    Retrieved on : 2/11/2020 14:59:13 Page 1 of 23Steel Dynamics Rev Level 1 [110] - 239

  • Alloy Surcharge Rates as of 03/01/2020

    Grade Alloy Value

    Nominal Surcharge CWT CWT

    Total

    $1.18 Ferromolybdenum .15015B28 Mod $1.18

    $1.18 Ferromolybdenum .15015B29 Mod $1.18

    $0.24 Ferrovanadium .03015V10M $0.24

    $0.69 Ferrovanadium .08515V16 $0.69

    $0.69 Ferrovanadium .08515V16 LF6 $0.69

    $0.61 Ferrovanadium .07515V18 $0.61

    $0.82 Ferrovanadium .10015V20M $0.82

    $0.45 Ferrovanadium .05515V22 PT $0.45

    $0.61 Ferrovanadium .07515V24 $0.61

    $1.22 Ferrovanadium .15015V24 Mod $1.22

    $1.10 Ferrovanadium .13515V24M $1.10

    $0.61 Ferrovanadium .07515V27M $0.61

    $1.10 Ferrovanadium .13515V30 $1.10

    $1.10 Ferrovanadium .13515V30 Mod $1.10

    $1.55 Ferrovanadium .19015V30M $1.55

    $0.69 Ferrovanadium .08515V37M 1E1586 $0.69

    Ferrovanadium .10015V38 C38 Mod $0.82 $0.90 Ferrochromium HC .150 $0.08

    $0.73 Ferrovanadium .09015V38M $0.73

    Ferrovanadium .14515V44 C44 Mod $1.18 $1.31 Ferrochromium HC .250 $0.13

    $1.02 Ferrovanadium .12515V45M $1.02

    $1.06 Ferrovanadium .13015V45M 1E1106 $1.06

    $0.53 Ferrochromium HC 1.05016MnCr5 $0.53

    $0.53 Ferrochromium HC 1.05016MnCrS5 $0.53

    $0.98 Ferrovanadium .12017MnV7 $0.98

    Ferromolybdenum .30018CrNiMo7-6 $2.36 Nickel 1.550 $4.26

    Retrieved on : 2/11/2020 14:59:13 Page 2 of 23Steel Dynamics Rev Level 1 [110] - 239

  • Alloy Surcharge Rates as of 03/01/2020

    Grade Alloy Value

    Nominal Surcharge CWT CWT

    Total

    $7.45 Ferrochromium HC 1.65018CrNiMo7-6 $0.83

    Ferromolybdenum .3501E1371 $2.75 Ferrovanadium .095 $0.78

    $4.43 Ferrochromium HC 1.800 $0.90

    Ferrovanadium .1001E1497 $0.82 $0.90 Ferrochromium HC .150 $0.08

    $0.60 Ferrochromium HC 1.20020MNCR5 $0.60

    $0.58 Ferrochromium HC 1.15020MnCrS5 $0.58

    Ferromolybdenum .44025MoCr4 $3.45 $3.90 Ferrochromium HC .900 $0.45

    Ferromolybdenum .42525MoCr4 Ver 50 $3.34 $3.78 Ferrochromium HC .870 $0.44

    Ferromolybdenum .42525MoCrS4 Hay1 $3.34 $3.82 Ferrochromium HC .950 $0.48

    Ferromolybdenum .42525MoCrS4 Hay2 $3.34 $3.82 Ferrochromium HC .950 $0.48

    $0.94 Ferrovanadium .11530MnVS6 $0.94

    $0.90 Ferrovanadium .11030MnVS6-VD $0.90

    Ferrovanadium .20035MnVS4 $1.63 $1.71 Ferrochromium HC .150 $0.08

    $0.90 Ferrovanadium .11038MnSiVS5 $0.90

    $0.90 Ferrovanadium .11038MnVS6 $0.90

    $1.96 Ferromolybdenum .2504023 $1.96

    $2.04 Ferromolybdenum .2604027 $2.04

    Ferromolybdenum .35540BV40 Mod $2.79 $3.61 Ferrovanadium .100 $0.82

    Ferromolybdenum .35540BV40M 1E4146 $2.79 $3.61 Ferrovanadium .100 $0.82

    Ferromolybdenum .1154118 $0.90 $1.15 Ferrochromium HC .500 $0.25

    Ferromolybdenum .1154118-8/BQ $0.90 $1.15 Ferrochromium HC .500 $0.25

    Ferromolybdenum .1154118/4118-2 $0.90

    Retrieved on : 2/11/2020 14:59:13 Page 3 of 23Steel Dynamics Rev Level 1 [110] - 239

  • Alloy Surcharge Rates as of 03/01/2020

    Grade Alloy Value

    Nominal Surcharge CWT CWT

    Total

    $1.15 Ferrochromium HC .5004118/4118-2 $0.25

    Ferromolybdenum .1704120 $1.33 $1.59 Ferrochromium HC .520 $0.26

    Ferromolybdenum .1704120 QL2 $1.33 $1.59 Ferrochromium HC .520 $0.26

    Ferromolybdenum .1704120 QL3 $1.33 $1.59 Ferrochromium HC .520 $0.26

    Ferromolybdenum .1704120H B81 $1.33 $1.59 Ferrochromium HC .520 $0.26

    Ferromolybdenum .1704120H QL2 $1.33 $1.59 Ferrochromium HC .520 $0.26

    Ferromolybdenum .1754120M $1.37 $1.62 Ferrochromium HC .500 $0.25

    Ferromolybdenum .1654120M 1E1120 $1.30 $1.59 Ferrochromium HC .575 $0.29

    Ferromolybdenum .1704120RH QL4 $1.33 $1.59 Ferrochromium HC .520 $0.26

    Ferromolybdenum .1704122M $1.33 $1.58 Ferrochromium HC .500 $0.25

    Ferromolybdenum .2254122M 1E0778 $1.77 $2.18 Ferrochromium HC .825 $0.41

    Ferromolybdenum .3254122M 1E1054 $2.55 $3.01 Ferrochromium HC .925 $0.46

    Ferromolybdenum .1704122M B222-6(F) $1.33 $1.56 Ferrochromium HC .450 $0.23

    Ferromolybdenum .4004124 M $3.14 Nickel .205 $0.56

    $4.21 Ferrochromium HC 1.025 $0.51

    Ferromolybdenum .1704124M $1.33 $1.66 Ferrochromium HC .650 $0.33

    Ferromolybdenum .1704124M B222 $1.33 $1.66 Ferrochromium HC .650 $0.33

    Ferromolybdenum .1704124M B222-5(F) $1.33 $1.62 Ferrochromium HC .580 $0.29

    Ferromolybdenum .1704124M B222-5mod $1.33 $1.65 Ferrochromium HC .630 $0.32

    Ferromolybdenum .1704124M B222-7(F) $1.33

    Retrieved on : 2/11/2020 14:59:13 Page 4 of 23Steel Dynamics Rev Level 1 [110] - 239

  • Alloy Surcharge Rates as of 03/01/2020

    Grade Alloy Value

    Nominal Surcharge CWT CWT

    Total

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