SteelMint: India's domestic steel scrap index inches down despite tight supply

SteelMint's domestic steel scrap (end-cutting) index decreased by INR 200/tonne (t) to INR 48,900/t DAP Mandi Gobindgarh.

Although scrap traders are holding the material in anticipation of a price rise in the first week of April, prices went down because of a marginal correction in semi-finished steel prices led by weak finished steel movement. Re-rollers are reluctant to procure at the current price levels and focusing on clearing their inventory.

Today shipbreaking melting scrap prices in Alang, Gujarat have increased by INR 200/t exy, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 48,200/t exy.

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

Scrap Grade and Spread Calculation: (MandiGobindgarh)

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.