SteelMint: India's domestic steel scrap index declines by INR 400/t on dull sentiments

SteelMint's domestic steel scrap (end-cutting) index decreased further by INR 400/tonne (t) to INR 39,500/t DAP Mandi Gobindgarh on 20 Dec'21.

Slow finished steel movement and poor future bookings despite lower capacity utilisation dragged down semi-finished steel prices, which resulted in the downward correction in scrap prices.

However, scrap offers have seen a recovery in the last few days but buyers are not interested on booking high volumes. Instead, they are procuring requisite quantity on expectation of a price correction in the near term.

Weak sentiments forced scrap buyers to hold their bids with most of them opting the 'wait and watch' mode to maintain the conversion spread, which is hovering at around INR 10,000/t from the base price.

Furthermore, supply from neighbouring states has been affected due to the recently imposed restrictions on construction activities. However, these have been partially eased, as per market sources.

Today, 14 sets of trades, indicative prices/bids/offers were recorded in the publishing window.

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: (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.