SteelMint: Domestic scrap index stays stable despite slow semi-finished demand

SteelMint's domestic steel scrap (end-cutting) index remained stable at INR 41,500/t DAP Mandi Gobindgarh on 12 Jan'22.

Almost stable semi-finished steel prices on a d-o- d basis and limited transactions kept scrap prices unchanged.

However mid-sized hot-charging steel units planning to run their mills five days a weak due to inadequate scrap supply have seen their finished products inventory, especially round products, rise to an all-time high.

Meanwhile, a few trader sources informed that trades have down slowed in the apprehension that the further spread of infections could hamper market liquidity as well as payment collection.

The market outlook may remain strong in the near term on the basis of the recently concluded basic pig iron (BPI) auction conducted by a state-owned steel producer wherein the entire quantity was booked at INR 41,300/t exw on a weighted average basis.

Today, 12 sets of trades, indicative prices/bids/offers were recorded.

The index also derives the HMS 80:20 scrap (Heavy, Med), and CR Sheet cutting prices traded in the region.

Scrap Grade and Spread Calculation: (MandiGobindgarh)

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.