SteelMint: India's domestic steel scrap index improves by INR 200/t tracking semis' movement

SteelMint's domestic steel scrap (end-cutting) index gained by INR 200/tonne (t) to INR 39,000/t DAP Mandi Gobindgarh. An improvement in semi-finished steel prices by around INR 300-400/t on a d-o-d basis lifted scrap offers despite measured buying inquiries in finished steel.

The positive trend in semi-finished and finished steel across major markets lifted buying interest today but actual material lifting through traders or retailers is yet to pick up.

Quite a few stand-alone re-rollers have slashed their production level by up to 50%, owing to inadequate future bookings. That apart, their previous transaction invoices are yet to be liquidated which has disturbed the overall cycle, whether in semi-finished or melting scrap procurement.

Further, interstate scrap supply has been gaining momentum since the last 3-4 days and is likely to be at adequate levels with the monsoon on its last legs, shared a few scrap suppliers.

A few hot-charging mills said that imported scrap offers on high-seas basis are under negotiation which are being sourced through traders from the Middle East. These are likely to get concluded, although the quantity is negligible. But resuming overseas scrap may change the scenario as domestic supply is on average levels and conversion spread from melting scrap to semi-finished steel improves by INR 200-300/t.

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.