SteelMint: India's domestic steel scrap index rises sharply by INR 1,000/t on healthy trade

SteelMint's domestic steel scrap (end-cutting) index jumped by INR 1,000/tonne (t) to INR 40,700/t DAP Mandi Gobindgarh on 27 Dec'21.

Increased sponge iron and semi-finished steel prices across regions propelled traders to lift their offers and bids today.

A sudden hike in semi-finished steel prices forced scrap sellers to hold their offers in expectation of optimum realisation, which resulted in strengthening of bids.

On the other side, in the finished steel segment, most of the traders seemed to be cautious in procuring the material, hence, very limited to no future bookings were observed.

Meanwhile, offers of Middle East-origin imported scrap HMS (80:20) are assessed at $455-460/t, almost in the same range as domestic scrap. The landed cost of the imported scrap into India is at INR 37,400-37,600/t while domestic scrap is available INR 36,800-37,200/t.

Today, 13 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.