SteelMint: India's domestic steel scrap index rises INR 700/t on limited availability

SteelMint's domestic steel scrap (end-cutting) index moved up by INR 700/t to INR 49,700/tonne (t) DAP Mandi Gobindgarh on 28 Mar'22. Limited scrap availability forced buyers to raise their bids to procure requisite volumes.

However, standalone re-rollers witnessed moderate finished steel movement due to higher offers. Retailers were booking in small volumes considering the uncertain market trend.

Meanwhile, liquidity in the market is tight due to ending of the current financial year, a scrap trader said.

Shipbreaking melting scrap prices in Alang, Gujarat have also increased by INR 500/t exy, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 47,500/t exy.

Today, 11 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 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.