Ervin Amasteel Scrap Surcharge changes

The World Standard for Quality
A Member of Ervin Industries Incorporated Group
Ervin Amasteel Scrap Surcharge changes
In light of the suspension of the EUROFER Scrap Index, Ervin Industries has completed an analysis of
viable alternatives to reflect the variability of the steel scrap market. Our analysis has identified BDSV,
an independent scrap association in Germany, as a source of reliable and accurate price reporting.
Ervin has no commercial relationship with BDSV, nor any historical association with its index, and
recognizes BDSV as an entirely independent source of pricing information. After Ervin begins using the
BDSV index next month, it will closely monitor that index to ensure that it provides a fair and accurate
reflection of Ervin’s scrap cost for surcharge purposes. In the event that the BDSV index fails to meet
Ervin’s stringent standards, Ervin reserves the right to identify alternative approaches to addressing
scrap cost volatility in its price structure.
The BDSV differs from the previous Eurofer index in that it is expressed as ex-works. The revised
formula therefore takes this into account. It will be based upon the 2/8 grade and will be calculated as
(BDSV + Transport/yield) minus the surcharge cost when originally introduced, which is expressed as
((BDSV+29)/0.9)-50).
http://www.bdsv.org/downloads/bdsv_preise_stahlschrott_2016.pdf
The surcharge will be calculated for application strictly on the first of the month following the
publication of the BDSV index which reports the 3rd week of each month. The first application of the
figure will be on 1st April.
Philip Ripley
Commercial Director
ERVIN GERMANY GmbH
Tel.: +44(0)121 522 7403
Fax: +44(0)121 522 2501
e-mail: [email protected]
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