SteelMint: India's domestic steel scrap index stable on better supply

SteelMint's domestic steel scrap (end-cutting) index remained stable at INR 41,000/t DAP Mandi Gobindgarh. Adequate scrap offers and better transactions in semi-finished steel helped scrap offers to remain firm on a d-o-d basis.

Overall, scrap supply has improved and despite fluctuations in semi-finished steel prices, the market witnessed usual transaction levels. Market participants believe that operational activities may be disrupted in the near term amidst coal shortage which could interrupt production utilisation by 1-2 days in a week.

A few standalone rolling mills (rebar and structure) opined that finished steel prices may remain supportive as per demand and supply trends, if production gets curtailed in the coming weeks.

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? 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.