SteelMint: India's domestic steel scrap index hits all-time high

SteelMint's domestic steel scrap (end-cutting) index moved up by INR 800/tonne (t) to INR 46,200/t DAP Mandi Gobindgarh on 25 Feb'22. The index has hit an all-time since data maintained with SteelMint from October 2020.

Higher raw material (sponge iron) and semi-finished steel (ingots/billets) prices prompted scrap traders to raise their offers.

Sources said, there were plenty of offers in the market but buyers kept to the sidelines in hopes of a correction in prices in the upcoming week, SteelMint learned from sources.

Meanwhile, a few trade participants said that demand for semi-finished steel has improved in the local market since the past few days mainly due to higher landed costs of the material coming from the other competitive markets, particularly from the Odisha and Durgapur markets.

The Index also derives the HMS 80:20 scrap (Heavy, Med), and CR busheling scrap prices traded in the region.

Scrap Grade and Spread Calculation: (MandiGobindgarh)

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.