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 39,000/t DAP Mandi Gobindgarh on 29 Nov'21.

Moderate trading in the finished steel market and supportive semi-finished steel prices pushed up scrap prices marginally.

Meanwhile, due to acute scrap shortage in the market, several small and mid-sized furnaces readjusted their operational hours to up to 10 hours in a day as against 12-14 hours seen a few days back.

In line, scrap buyers said that there is very limited inventory available with them, which may last for only 3-5 days, hence they are highly dependent on daily procurement to run their furnaces.

A few trade partners, who are primarily involved in the imported scrap market informed that, currently there is no viability of imported scrap into the market and no deals have been done recently due to higher landed costs and fluctuation in steel prices.

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? 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.