SteelMint: India's domestic steel scrap index shoots up by INR 700/t ($10)
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SteelMint's domestic steel scrap index increased by INR 700/t today (02 Dec'20). The index for melting scrap (end cutting) is assessed at INR 30,100/t DAP Mandi Gobindgarh basis. Prices are edging close to 2-years high, as per data maintained with SteelMint.
Factors that could be attributed towards sharp hike are disturbed logistics in scrap supplies over farmer protest. In addition to it, strengthening sponge iron prices from eastern India, which is the preferable sourcing region for Punjab based buyers have also observed momentum and have increased by INR 500-600/t.
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.
Steel Melting Scrap Assessment as on 02 Dec'20
| Scrap Type Name | Yield | Price | Min | Max |
| HMS 80-20 (Selected) | 94-96% | 28,800 | 28,600 | 29,000 |
| End Cutting (Structure/Rebar) INDEX | 97-98% | 30,100 | 30,000 | 30,300 |
| CR Sheet Cutting | 98% | 31,000 | 30,900 | 31,300 |
| Pipe Cutting | - | 29,700 | 29,600 | 29,900 |
Prices in INR/t, DAP (Delivered at Plant)
To see SteelMint's Melting Scrap Assessment, its different spread calculation, 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 m nt.
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 - abhishek.bhalla@steelmint.com
