SteelMint: India's domestic steel scrap index up by INR 400/t on inadequate supply

SteelMint's domestic steel scrap (end-cutting) index moved up by INR 400/tonne (t) to INR 42,600/t DAP Mandi Gobindgarh on 20 Jan'22.

Key factors supporting this marginal hike were the slight improvement in semi-finished and sponge iron prices which induced scrap traders to up their offers amidst tight scrap supply.

In addition, a few scrap sellers held their offers as they are anticipating that the market would be on the positive side which would allow them to get more profit during trade as per the conversion spread.

However, some trade participants said that existing sponge iron prices are much higher in terms of recovering metal value but right mixture is needed to maintain the chemical composition particularly for a low carbon product like steel billets, for example, for producing patra.

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: (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.