MRW has announced a recalibration of its guide prices for ferrous metals.
Editor Robin Latchem said he understood that the change would cause difficulties for some subscribers but a comprehensive review was necessary.
He said the main reason for the change was a clerical error in May, when the prices for a small number of grades, including 5C, were transposed and this had had a knock-on effect to other grades. This error was exacerbated by subsequent movement in prices.
In order to correct the mistake, researchers took the opportunity to check with merchants on the full range of grades covered by MRW.
Latchem said: “First of all, we must apologise for the inconvenience that both the mistake and now the recalibration have undoubtedly caused those trading in these metals.
“But once we knew we were wrong, we had no choice other than to hold our hand up. Key grades such as 5C were listed lower than we should have had them.
“Merchants know that MRW is rarely given specific prices. Usually they tell us if prices are up or down by £x depending on recent movements. It was clear from our calls this month – where we did have conversations about prices and relative values – that some grades had been on the low side for some time.”
Particular attention had been placed on 5C, which was seen as a marker grade. At the time of writing, it was at £50-£70 per tonne which some traders said was on the high side, but most concurred.
“There will be concern that prices have ‘jumped’ during a period when the market has been weak but the relative prices are valid and I hope negotiators will be able to work with that: before, we were giving wrong prices for some grades and that wasn’t acceptable.”
- The graph above shows the re-calibration and the prices for four grades this year. The table below has the prices in our latest issue.