SteelMint: India's domestic steel scrap index jumps by INR 600/t on improve semis' deals

SteelMint's domestic steel scrap (end-cutting) index further increased by INR 600/tonne (t) to INR 39,100/t DAP Mandi Gobindgarh. While semi-finished transactions improved scrap offers remained restrained as sellers held on to their offers because of the current uptrend in expectations of recovering previous low realisations.

However, a few semi-finished steel sellers (induction furnace units) shared that they have adjusted their production capacity in view of limited buying inquiries from re-rollers (standalone rebar and structure mills) and increasing inventory levels as well as poor lifting by traders or retailers.

Regular scrap shortage over the last couple of weeks equally contributed to the lower utilisation rate amidst inadequate margins achieved by semi-finished steelmakers. However, some improvement has been seen over the last 2-3 days, informed reliable trade channels.

Furthermore, most trade participants are expecting to hear some positive feedback from today's ongoing meeting against changes in the GST regime for scrap. There was no press release on this till the time of publishing this report.

Today, 14 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.