SteelMint: Mandi scrap index falls amid sluggish semis sales

SteelMint's domestic steel scrap (end-cutting) index slid by INR 900/tonne (t) to INR 47,300/t DAP Mandi Gobindgarh on 21 May 2022.

Domestic scrap prices went under pressure because of slow steel ingots sales. Steel-makers continued to buy the raw material only to meet their immediate requirement for two-three days. Most mills focussed on liquidating their steel inventories.

Although some transactions for semis were concluded at INR 53,500-700/t in the second half today, it did not impact the sentiments of the melting scrap market.

Scrap sellers who basically supply to Mandi have moved to other states in absence of firm bids, resulting in the shortage in the market.

Today, 10 sets of trades, indicative prices/bids/offers were recorded in our publishing window.

The Index also derives the HMS 80:20 scrap (Heavy, Med), and CR busheling scrap 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.