SteelMint’s domestic steel scrap (end-cutting) index moved up by INR 100/tonne (t) to INR 39,200/t DAP Mandi Gobindgarh on 23 Dec’21.
Factors supporting the marginal hike were slight improvement in prices of substitute raw materials (sponge iron) and improved trades in semi-finished steel amidst tight scrap supply.
In addition, a few scrap sellers held their offers due to the upward price movement in mild steel ingots in order to recover past losses, as per their conversion spreads.
Further, standalone steel furnaces are maintaining only three-five days raw material (scrap) due to uncertain market trends and are willing to procure material in order to sell their products (ingot/billet).
Moreover, a few trader sources said that in the Christmas/New Year festive time term trade activities may slow down, while prices may remain rangebound without any major change.
Today, 12 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 normalised 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 market 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.
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