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

SteelMint's domestic steel scrap index (end-cutting) increased by INR 600/tonne (t) to INR 38,200/t DAP Mandi Gobindgarh. Tight scrap inflow made buyers raise their bids which got reflected in semi-finished steel prices to match the conversion spread accordingly.

In line, surrounding markets saw improved buying inquiries in semis and finished steel, both of which displayed a better price trend. A few sellers are not floating offers due to supportive sentiments in the raw steel segment, said a few traders.

However, steel prices may correct in the near term as per market sources, based on a couple of reasons. First, lower price offering in the nearest markets can make it viable to supply. Secondly, raw material prices have declined, especially sponge iron.

Today, 14 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.