SteelMint: India's domestic steel scrap index largely stable amidst volatile semis prices

SteelMint's domestic steel scrap (end-cutting) index remained almost flat at INR 42,200/tonne (t) DAP Mandi Gobindgarh on 19 Jan'22 amidst slight fluctuations in semi-finished steel prices.

However, a few transactions in scrap were reported to have been concluded today.

A strip/pipe manufacturer said that despite limited demand in finished steel, prices of steel ingots/billets remained supported mainly due to rising demand for locally-produced material as local offers are cost-effective compared to prices in the inter-state markets, thereby putting pressure on Mandi suppliers.

Further, a rebar manufacturer said that the price gap between IF- and BF-route rebar prices has narrowed down, boosting demand for BF-route material.

On the other hand, demand for high-grade scrap is limited in the market amidst production cuts and lower finished steel demand

Today, 12 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: (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.