The Stainless Steel Feedstock Index (SSFI) is a creation of the newsletter Australian Steel News (ASN). Whilst it doesn´t show the actual cost of buying stainless steel in the Australian marketplace, it does show the month-to-month change in the combined price of the ingredients typically used in the making of one tonne of 304 grade stainless steel via the electric arc furnace (EAF) method. First, the following pricing information is obtained:
Iron ore – 62% Fe fines iron ore CFR China via SGX. Group.
Ferro Chromium – Latest price range average from Argus Media.
Nickel – London Metal Exchange 3-month futures closing price.
We assume the composition to be iron ore 70%, ferro chromium 18% and nickel 8%. (The cost of the remaining 4% of ingredients is minimal). The prices for the main three ingredients are combined to give the SSFI which is expressed in USD and AUD terms per metric tonne.