SteelMint: India's domestic steel scrap index rises on supportive sentiments

SteelMint's domestic steel scrap (end-cutting) index increased by INR 400/tonne (t) to INR 42,900/t DAP Mandi Gobindgarh on 24 Jan'22.

Increased substitute (sponge iron) and semi-finished steel prices prompted scrap traders to raise their offer prices amidst the supply shortage.

However, local induction furnace units have concluded deals for semi-finished steel to the specific markets. The inter-state material is not viable due to higher prices which resulted in increase in bids.

A few sources believed that high prices in the other key markets provided support to local prices.

Meanwhile, scrap buyers said that due to tight supply, the conversion spread from melting scrap to semi-finished (ingots) corrected by INR 200-300/t and currently hovers at INR 9,500-9,800/t. It is expected that the spread may correct further due to logistic issues along with bad weather conditions.

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 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.