SteelMint: India's domestic steel scrap index further rises by INR 200/t on higher semis' demand

SteelMint's domestic steel scrap (end-cutting) index moved up by INR 200/tonne (t) to INR 43,100/t DAP Mandi Gobindgarh. Higher scrap offers followed considerable improvement in semi-finished steel demand on a d-o-d basis.

Supply of the usual grades has improved. However, higher grades with better yield still remain elusive. Meanwhile, scrap sellers are now offering adequate volumes to get better realisations in view of near-term good prospects.

However, a few re-rollers (tubes makers) said demand has marginally improved despite rising steel prices on account of non-viability of material in the surrounding markets. But appropriate material lifting is yet to happen.

A few standalone rolling mills (rebar and structure) which were operating at almost 50-60% capacity continue to do so on rising raw material prices which they are unable to absorb and the near-term capacity utilisation level may be adjusted as per trade dynamics.

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? India's National Steel Recycling policy mentioned that the efficient use of scrap for steel production becomes very crucial for India as 35-40% share has been envisaged from scrap-based steel production in the journey of 300 mn t pa by 2030. This shall increase the requirement of steel scrap sharply from the present level of around 30 mn t.

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.