SteelMint: India's domestic steel scrap index stable on moderate transactions in semis

SteelMint's domestic steel scrap (end-cutting) index remained stable at INR 40,700/ (t) DAP Mandi Gobindgarh on 8 Jan'22.

Scrap offers remained range bound owing to moderate movement in semi-finished steel in today's trading session. Only sporadic scrap contracts were concluded today.

A few re-rollers informed that buying inquiries in strip and pipe segment have improved slightly from the nearby markets.

Further, larger IF units were heard to be refraining from booking imported scrap considering its higher prices and a longer transit time. Current offers for HMS 80:20 of Middle East origin are at $470-475/t which translates into a landed cost of INR 38,500-38,800/t DAP against domestic scrap available at INR 37,000-37200/t.

The near-term outlook for scrap prices may remain supportive amidst the rising covid cases in the key supplying states, which could hamper scrap generation, leading to tight supply.

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.

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? 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.