SteelMint: India's domestic steel scrap index dips by INR 100/t

SteelMint's domestic steel scrap (end-cutting) index declined marginally by INR 100/tonne (t) to INR 40,200/t DAP Mandi Gobindgarh on 6 Jan'22.

The market witnessed plenty of scrap offers at lower levels. On the other hand, some active transactions in semi-finished steel were also noticed.

In a conversation with SteeMint, a few concast units said that they would prefer to participate in the scrap auctions to maintain proper bookkeeping and to get better yields of prime grade material like CRCA busheling scrap, plate cuttings, HR trimmings, etc.

However, procurement costing would be slightly higher in the auctions compared to the spot market as buyers will have to lift the material on ex-work basis and advance payment terms. On the contrary, the spot market allows the buyer to pay after the material is delivered to their premises.

On the other hand, regular administrative checkings have affected the smooth sourcing of scrap from the inter-state markets, a few scrap traders said.

Further, a few standalone rolling mills (strip and patra) expect that finished steel prices may remain supportive considering the demand and supply trend amidst non-viable offers from the outside markets.

Today, 10 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.