SteelMint’s domestic steel scrap (end-cutting) index moved down by INR 300/tonne (t) to INR 38,600/t DAP Mandi Gobindgarh. Certain factors contributed to the slight corrections.
Scrap availability slightly improved and encouraged sellers to offer in a wide range amid selling pressure.
Global prices witnessed a southward direction along with considerable contraction in the equities market, specifically the metal market, which led to dull sentiments in the domestic market.
Trade participants, especially buyers, are in wait-and-watch mode and holding their transactions or procurement in the prevailing scenario.
Induction furnace units are trying to slightly improve their conversion spread and nominal transactions have been reported up to INR 11,300/t against the previous INR 10,900-11,100/t
The near-term price range is hard to predict but a few traders are assuming that the required correction may happen in the near term as per market needs.
Today, 10 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.
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