SteelMint’s domestic steel scrap (end-cutting) index remained almost firm at INR 39,700/tonne (t) DAP Mandi Gobindgarh.
Very few transactions were reported through the day due to restrained offers. Sellers are expecting an upward trend amid a slight shortfall in scrap supply especially from inter-state.
Scrap availability remained elusive specifically from UP and Bihar since suppliers are getting better margins in their local markets.
Further, offers and bids disparities rose by up to INR 500-600/t against INR 300-400/t seen the previous day. Induction furnace units are not aggressive enough due to the uncertainty in the market.
Further, imported scrap offers for HMS (80:20) of Middle East origin are still not viable at this moment, hovering at around $495/t. This translates into a landed cost of INR 40,000-40,500/t DAP against domestic scrap prices of INR 35,700-36,100/t.
Due to slow demand in finished steel, prices are correcting on a d-o-d basis in rebar, structures, and pipe product. Re-rollers said buying inquiries may improve at the existing price levels as these have reached the expectation of retailers and end-users.
Today, 15 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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