SteelMint: India's domestic steel scrap index dips by INR 300/t

SteelMint's domestic steel scrap (end-cutting) index dropped slightly by INR 300/tonne (t) to INR 43,000/t DAP Mandi Gobindgarh on 15 Feb'22.

The index dipped on the back of falling bids by induction furnaces amidst a consistent decline in semi-finished steel prices.

Due to moderate finished steel sales, re-rollers are purchasing the raw material (ingots/billets) in smaller quantities just to meet their requirement. Meanwhile, a structural steel re-roller said that they are currently running their mill for 10 hours in a day and 5 days in a week.

Some market participants expect to see minor corrections in scrap prices in the near term amidst the upcoming state elections while a few others believe that prices may stay range-bound.

Meanwhile, imported scrap offers for HMS 80:20 of Middle East-origin are currently hovering at $495-497/t which translate to a landed cost of INR 40,600-40,800/t DAP while domestic material is available at INR 39,800-40,000/t.

Today, 12 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.