SteelMint: India's domestic steel scrap index continues uptrend

SteelMint's domestic steel scrap (end-cutting) index increased by INR 1,900/tonne (t) to INR 55,000/t DAP Mandi Gobindgarh on 9 Mar'22, higher by around 64% compared to the prices seen in the same period last year.

A recovery in steel ingots/billets prices on d-o-d basis lent support to melting scrap prices.

The basic conversion spread from melting scrap to steel ingots has further improved to INR 13,500/t from INR 13,000/t previously.

Additionally, the gap between offers and bids still stands at around INR 500-1,000/t.

The conflict between Ukraine and Russia is expected to burden domestic steelmakers with high input costs, sources said. However, the ongoing tension between the countries is providing exports opportunities to the Indian steel players.

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.