SteelMint: India's domestic steel scrap index rises by INR 600/t on tight supply

SteelMint's domestic steel scrap (end-cutting) index increased by INR 600/tonne (t) to INR 41,500/t DAP Mandi Gobindgarh on 11 Jan'22. Improved semi-finished steel sentiments propelled scrap sellers to hold back offers to increase bids.

A few trade participants said that dispite moderate finished steel sales, semi-finished prices rose due to limited availability of the material owing to higher offers from the nearby markets.

Further, it is expected that scrap supply may continue to remain weak in the near term due to strict administration checking in the local market as well as less generation due to increasing Covid cases in the major supplying markets.

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 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? 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.