SteelMint: India's domestic steel scrap index up INR 200/t on improved semis trade

SteelMint's domestic steel scrap (end-cutting) index moved up by INR 200/tonne (t) to INR 40,900/t DAP Mandi Gobindgarh on 10 Jan'22.

Scrap prices remained supported by slight improvement in substitute raw material (sponge iron) prices, pushing up semi-finished prices. Meanwhile, scrap supply remained tight.

Further, scrap arrival is getting weaker due to continuous rains in the local and surrounding markets, creating logistics and supply issues.

Further, a few trade participants said that the code of conduct has been implemented in Punjab which could to reduce unaccounted transactions due to strict checking at the borders. Consequently, constrained supply may continue to exist in the market.

Moreover, there is a disparity in bid-offers by INR 300-400/t. Offers also varied from unit to unit. For example large CCM units need to incur high costs due to high scrap requirement compared to medium concast and small induction units.

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.