SteelMint: India's domestic steel scrap index slips INR 500/t on dull sentiments

SteelMint's domestic steel scrap (end-cutting) index fell by INR 500/tonne (t) to INR 39,200/t DAP Mandi Gobindgarh on 11 Nov'21.

Falling prices of semi-finished steel products (ingot/billet) due to lack of demand from the re-rolling mills put scrap prices under pressure today.

Small induction/electrical furnace operators hold scrap inventory for approximately two-three days. Supply shortage may lead to suspension of operations at small mills in a few days' time until supply inflow improves in the market, SteelMint notes.

The conversion spread from melting scrap to ingot corrected on a d-o-d basis owing to heavy inter-state shortfall in material movement of basic as well as premium grades.

Mill sources said that finished steel demand has still not improved despite decline in prices on a w-o-w basis. However, buying enquiries remained limited for specific products due to weak demand in the interstate markets.

Today, 10 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.