India: Mandi steel scrap index edges up on supply shortage

SteelMint's domestic steel scrap (end-cutting) index moved up by INR 150/tonne (t) to INR 41,800/t DAP Mandi Gobindgarh.

The shortage of scrap is supporting the semi-finished (ingots) market inspite of muted demand. According to market sources, more than 40 furnaces in Mandi Gobindgarh are running for only 8-10 hours a day due to limited scrap supply.

Today, local ingot manufacturers have lowered bids for scrap by INR 500/t d-o-d, thus, narrowing down conversion spread to around INR 12,500/t. According to sources, conversion spreads may decrease in the near future.

Also, the scrap market in the near-term is expected to remain supportive, but semis prices are likely to fluctuate.

The index also derives the HMS 80:20 scrap (heavy, medium), and CR busheling scrap prices traded in the region.

Scrap Grade and Spread Calculation: (Mandi Gobindgarh)

Prices in INR/t, DAP (Delivered at Plant)

To see SteelMint's Melting Scrap Assessment, pricing methodology and specification documents,Click here

What is SteelMint Indian scrap index - SteelMint's assessment of Mandi scrap reflects the prices of different melting HMS grade generated and traded in the domestic market. SteelMint gathers and verifies information from buyers and sellers active in the physical spot market. The data obtained by SteelMint, are normalized for yield, dimensions, density, location and other terms of trade to the specifications.

Why this index? In order to bring more transparency in domestic scrap prices in India, we have adopted this robust methodology to ascertain the price trends..

Methodology - Market data, including deals, bids, and offers that meet the delivery and quality criteria are considered for price assessments. The highest importance in the price calculation process is assigned to confirmed deals (T1) where either a buyer or seller has provided details of the transaction. Deals of only reputed and trustworthy producers and trading firms are included in the price collection and calculation process. Indicative prices, confirmed bids and offers are also considered valuable for the pricing process (T2). The index has been calculated using an average of T1 and T2 price inputs.

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.