Ohio Department of Transportation Inter-Office Communication

Date: June 1, 2008

To: District Highway Management Administrator

From: William Lindenbaum PE PS, Deputy Director, Division of Construction Management

By: Robert Jessberger, Construction Specialist

Subject: Steel Price Index – Proposal Note 525 dated 4/26/2004

The Steel Price Index as calculated from the last Wednesday of the preceding month is:

Month	American Metal Market (AMM) - Chicago
	Average $ / ton, gross No. 1 Heavy Melt	Average $ / ton, gross Shredded Auto Scrap	Steel Price $ / ton, gross Index
June 2008	$515.00	$565.00	$540.00

The Steel Price Index is to be used in accordance with Proposal Note 525 dated 4/26/2004 as excerpted below:

The Contractor is responsible for furnishing the following documentation:

1) The weight of steel (pounds or kilograms) actually incorporated into the various items of work covered by the proposal note.

2) Steel Certification and Mill Test Reports

3) The date that the steel, subject to adjustment, was shipped from the producing mill.

The total steel price adjustment (SPA) will be computed according to the following formulas:

For a Price Increase: SPA = [MI – (1.05 x BI)] x Q

For a Price Decrease: SPA = [MI – (0.95 x BI)] x Q

Where:

SPA = Total Steel Price Adjustment

MI = Mill Shipping Index. The average of the Consumer Buying Price Indices for the month the steel is shipped from the producing mill. The price shall be adjusted to dollars per pound (kg).

BI = Bidding Index. The average of the Consumer Buying Price Indices for the month preceding the month the work is let. The price shall be adjusted to dollars per pound (kg).

Q = Quantity of Manufactured Steel for adjustment in pounds (kg).

1 Ton, gross = 2240 lbs

This information will be needed by your Construction and Roadway Services sections.

Indexes for the previous months are on the following page.

WL: REJ: rj

c: Welker, Hisem, Chandler, Keller, OCA, FHWA, File

Historical Data obtained on the last Wednesday of the preceding month

Month	Average $/ ton, gross No. 1 Heavy Melt	Average $ / ton, gross Shredded Auto Scrap	Index $ / ton, gross
April 2001	$74.50	$93.00	$83.75
May 2001	$74.50	$93.00	$83.75
June 2001	$72.50	$93.00	$82.75
July 2001	$72.50	$85.00	$78.75
August 2001	$76.50	$85.00	$80.75
September 2001	$76.50	$85.00	$80.75
October 2001	$76.50	$85.00	$80.75
November 2001	$72.50	$85.00	$78.75
December 2001	$67.50	$77.50	$72.50
January 2002	$67.50	$77.50	$72.50
February 2002	$70.50	$80.50	$75.50
March 2002	$75.50	$89.00	$89.25
April 2002	$75.50	$89.00	$82.25
May 2002	$85.50	$100.00	$92.75
June 2002	$93.50	$110.00	$101.75
July 2002	$97.50	$115.00	$105.25
August 2002	$97.50	$113.00	$105.25
September 2002	$97.50	$113.00	$105.25
October 2002	$100.50	$113.00	$106.75
November 2002	$98.50	$110.00	$104.25
December 2002	$93.50	$105.00	$99.25
January 2003	$93.50	$105.00	$99.25
February 2003	$97.50	$117.00	$107.25
March 2003	$102.50	$122.00	$112.25
April 2003	$105.50	$135.00	$120.25
May 2003	$105.50	$135.00	$120.25
June 2003	$100.50	$125.00	$112.75
July 2003	$96.50	$120.00	$108.25
August 2003	$102.50	$129.00	$115.75
September 2003	$117.50	$140.00	$128.75
October 2003	$122.50	$145.00	$133.75
November 2003	$122.50	$145.00	$133.75
December 2003	$144.50	$165.00	$154.75
January 2004	$161.62	$183.00	$172.31
February 2004	$186.50	$211.00	$198.75
March 2004	$226.50	$255.00	$240.75
April 2004	$254.50	$282.50	$268.50
May 2004	$220.00	$220.00	$220.00
June 2004	$180.00	$185.00	$182.50
July 2004	$180.00	$195.00	$187.50
August 2004	$235.00	$285.00	$260.00
September 2004	$250.00	$285.00	$267.50
October 2004	$215.00	$245.00	$230.00
November 2004	$240.00	$285.00	$262.50
December 2004	$250.00	$305.00	$277.50
January 2005	$220.00	$275.00	$247.50

Historical Data obtained on the last Wednesday of the preceding month

February 2005	$200.00	$255.00	$227.50
March 2005	$190.00	$250.00	$220.00
April 2005	$190.00	$235.00	$212.50
May 2005	$220.00	$265.00	$242.50
June 2005	$180.00	$195.00	$187.50
July 2005	$125.00	$155.00	$140.00
August 2005	$140.00	$165.00	$152.50
September 2005	$195.00	$235.00	$215.00
October 2005	$245.00	$275.00	$260.00
November 2005	$205.00	$230.00	$217.50
December 2005	$250.00	$265.00	$257.50
January 2006	$242.00	$249.00	$245.50
February 2006	$220.00	$225.00	$222.50
March 2006	$239.50	$250.00	$244.75
April 2006	$237.50	$249.00	$243.25
May 2006	$245.00	$258.00	$251.50
June 2006	$248.50	$270.00	$259.25
July 2006	$249.50	$278.00	$263.75
August 2006	$244.50	$278.00	$261.25
September 2006	$203.00	$239.00	$221.00
October 2006	$208.00	$250.00	$229.00
November 2006	$202.00	$235.00	$218.50
December 2006	$197.00	$220.00	$218.50
January 2007	$205.00	$230.00	$217.50
February 2007	$230.00	$255.00	$242.50
March 2007	$255.00	$295.00	$275.00
April 2007	$310.00	$365.00	$337.50
May 2007	$290.00	$320.00	$305.00
June 2007	$252.00	$262.00	$257.00
July 2007	$255.00	$267.00	$261.00
August 2007	$250.00	$267.00	$258.50
September 2007	$258.00	$278.00	$268.00
October 2007	$270.00	$295.00	$282.50
November 2007	$265.00	$295.00	$280.00
December 2007	$250.00	$280.00	$265.00
January 2008	$278.00	$315.00	$296.50
February 2008	$345.00	$397.00	$371.00
March 2008	$338.00	$387.00	$362.50
April 2008	$355.00	$408.00	$381.50
May 2008	$505.00	$555.00	$530.00
June 2008	$515.00	$565.00	$540.00