SteelMint: India's domestic steel scrap index stable despite drop in semis prices
SteelMint’s domestic steel scrap (end-cutting) index remained stable at INR 42,200/tonne (t) DAP Mandi Gobindgarh on 18 Jan’22. Limited scrap offers in th...
SteelMint's domestic steel scrap (end-cutting) index remained stable at INR 42,200/tonne (t) DAP Mandi Gobindgarh on 18 Jan'22.
Limited scrap offers in the market and slow transactions in semi-finished steel weighed on the conversion spread d-o-d.
Inline, standalone induction furnace units saw minor correction in their daily margins while the same for medium or hot-charging units was range-bound due to firm scrap and finished steel prices.
The average spread between old scrap to ingots stood at around INR 10,270/t and end-cutting to ingots at INR 4,677/t in Dec'21.
A few standalone induction furnace participants believe that semi-finished steel prices will not fall substantially considering the high landed costs of the material from the nearby markets.
Today, 12 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.