India: SteelMint's domestic steel scrap index dips INR 300/t on dull sentiments

SteelMint's domestic steel scrap (end-cutting) index declined by INR 300/tonne (t) to INR 49,100/t DAP Mandi Gobindgarh.

Factors leading to price correction:

• Subdued demand for semis: Buying interest for semi-finished steel remained limited amidst a possibility of price correction in the near term.
  
  
• Buyers cautious: Scrap buyers are not interested in procuring healthy quantities at present amidst tight liquidity in the market with fiscal year-end approaching.
  
  

Today, shipbreaking melting scrap prices increased by INR 200/t in Alang, Gujarat. HMS (80:20) prices are at INR 48,000/t exy, SteelMint reports.

The Index derives the HMS 80:20 scrap (Heavy, Med), and CR busheling scrap prices traded in the region.

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? India's National Steel Recycling policy mentioned that the efficient use of scrap for steel production becomes very crucial for India as 35-40% share has been envisaged from scrap-based steel production in the journey of 300 mn t pa by 2030. This shall increase the requirement of steel scrap sharply from the present level of around 30 mn t.

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.