SteelMint’s domestic steel scrap (end-cutting) index fell by INR 600/tonne (t) to INR 40,300/t DAP Mandi Gobindgarh on 5 Dec’21.
The sharp correction in scrap prices was due to limited buying interest from rolling mills for ingots/billets, thereby, increasing selling pressure on semi-finished producers.
Mills have held their bids in an anticipation that prices may go down further. Furthermore, trading activities remained slow on logistics issues as transportation remain affected due to the continued rainfall.
Trade participants informed that low carbon steel billets, which are primarily procured by strip/pipe manufacturers of the nearby markets, are currently not viable due to high costs.
A standalone re-roller (structural steel manufacturer) said that finished steel sales have remained moderate in the last few weeks. At present, mills are running at 50% capacity to keep minimum inventory with them.
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? 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.
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