SteelMint: India's domestic steel scrap index jumps INR 1,200/t tracking semis movement

SteelMint's domestic steel scrap (end-cutting) index further increased by INR 1,200/tonne (t) to INR 51,600/t DAP Mandi Gobindgarh on 5 Mar'22. An improvement in steel ingots/billets prices supported melting scrap prices.

However, a few participants said that a sudden rise in raw material prices (ingots/billets) by INR 8,000/t on a w-o-w basis prompted retailers/end-users to book the material as per requirement.

Further, the basic conversion spread from melting scrap to steel ingots further has improved to INR 12,500/t from INR 12,000/t previously. Furthermore, there is a disparity of INR 500-700/t between offer and bid.

The larger units are currently booking imported scrap considering its cost effectiveness as compared to domestic melting scrap prices. Current indicative offers for HMS 80:20 of Middle East-origin are at $560-565/tonne which translate into a landed cost of INR 47,300- 47,600/t DAP Mandi Gobindgarh while domestic scrap is available at INR 48,300-48,700/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 busheling scrap 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? 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.