July 15, 2022
To our loyal customers of Kimmel Scrap:
I wanted those of you who generate bush and baling to be aware that the AMM/Fastmarkets announced on June 13, 2022 they will be making a non-market adjustment to the Detroit busheling price that will go into effect August 2022.
Why is this being done?
To quote Fastmarkets, “although Fastmarkets believes its monthly trends have been correct, there had been feedback from the market that busheling in Detroit no longer reflect actual transaction prices.” This has been the case for quite a long time and I voicedmy concerns with them multiple times as it appears so have others. Since their methodology has been inaccurate for such a long period of time we adjusted pricing to reflect the actual market.
What does this mean for me?
For many of you nothing as we will adjust your pricing accordingly. Those of you who have contracts with formulas
we will need to revisit those agreements and come to an amicable solution to ensure the price you are being paid for your bush/baling is fair to both parties.
If you have any questions please feel free to call Robert, TJ or myself and we will be happy to talk to you and further explain if necessary.
T.J. Yarema 103