SteelMint: India's domestic steel scrap index up INR 400/t on improved sentiments

SteelMint's domestic steel scrap index (end-cutting) increased by 400/tonne (t) to INR 42,200/t DAP Mandi Gobindgarh on 17 Jan'22.

Higher raw material (sponge iron) and semi-finished steel (ingots/billets) prices prompted scrap traders to raise their offers.

Small induction furnace mills managed to procure requisite volumes of scrap. A few transactions were heard to be concluded at higher levels.

Inline, there is a delay in delivery of the previous orders due to bad weather which affected logistics and transportation.

Meanwhile, a few trade participants said that demand for semi-finished has improved slightly since the past few days in the local market mainly due to higher landed costs of the material coming from the other major markets, particularly from the Durgapur market.

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.