SteelMint: Indian steel scrap index rises INR 1,600/t on soaring semis prices

SteelMint's domestic steel scrap (end-cutting) index increased further by INR 1,600/tonne (t) to INR 53,200/t DAP Mandi Gobindgarh on 7 Mar'22. An improvement in semi-finished prices supported melting scrap prices.

Due to an overall bearish trend as steel ingots prices almost touched an all-time high (INR 60,500/t DAP), scrap offers in the market also increased, thereby, widening the conversion spread from melting scrap to ingots. Currently, the margins are ranging across INR 12,500-13,000/t.

However, a few participants said that a sudden rise in raw material prices (ingots/billets) by INR 8,000/t on a w-o-w basis prompted retailers/end-users to book the material in limited volumes.

Today, 10 sets of trades, indicative prices/bids/offers were recorded in the publishing window.

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.