SteelMint: India's domestic steel scrap index rises by INR 400/t on semis buying

SteelMint's domestic steel scrap (end-cutting) index increased by INR 400/tonne (t) to INR 39,000/t DAP Mandi Gobindgarh. The main factor supporting the higher scrap prices today was healthy semi-finished steel transactions amid improved buying enquiries in finished steel, which urged buyers to raise their bids.

A few trade participants reported that scrap prices may stay supported in the near term based on a couple of reasons. First, there is improvement in sponge iron prices in the surrounding market, mainly due to the upward trend in coal prices. Secondly, higher price offering for semi-finished products in the nearest market.

Furthermore, re-rollers are currently running their mills for 8-10 hours in a day due to lack of future bookings amid uncertainty in prices and with raw material (semi-finished) stock levels of 10-12 days against the usual stock 15-20 days.

Today, 16 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.