SteelMint: India's domestic steel scrap index falls by INR 1,500/t as bids decline

SteelMint's domestic steel scrap (end-cutting) index fell by INR 1,500/tonne (t) to INR 49,000/t DAP Mandi Gobindgarh on 25 Mar'22 due to decline in bids.

There were plenty of offers in the market today which gave buyers the confidence to lower their bids.

Additionally, weak demand for finished steel products dragged down semi-finished steel prices which also resulted in a sharp downward correction in scrap prices.

Re-rollers said, due to falling steel prices, retailers may opt a wait-and-watch mode which may slow down scrap buying inquiries in the near term, SteelMint notes.

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.