SteelMint’s domestic steel scrap index (end-cutting) surged by INR 1,000/tonne (t) d-o-d to INR 48,000/t DAP Mandi Gobindgarh on 2 Mar’22. A hike in semi-finished steel (ingots/billets) and sponge iron prices prompted scrap traders to raise their offers to maintain the conversion spread.
A few trade participants said that demand for locally-produced semi-finished (ingots/billets) has slightly improved since the last couple of weeks mainly due to higher offers in the competitive state markets, particularly eastern-belt.
Price revision by primary billets producers (blast furnace-route) also gave confidence to IF-route producers to lift their prices, as per market sources.
Further, SteelMint learned that, a few hot charging units are currently running their furnaces at full capacity but rolling mills are operating at half of the capacity i.e. 10-12 hours a day as per the finished steel movement.
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 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.
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