SteelMint’s domestic steel scrap (end-cutting) index moved down by INR 2,100/ tonne (t) to INR 45,200/t d-o-d DAP Mandi Gobindgarh on 15 Mar’22.
Limited demand in the finished steel segment amid rising inventory levels at mills resulted in subdued buying enquiries for semi-finished steel. This led to a sharp correction in scrap prices.
However, a few re-rollers informed SteelMint that due to the bearish trend, retailers/end users are refraining from booking the material and waiting for the market to stabilise.
Further, the conversion spread from basic melting scrap to steel ingots improved and are currently in the range of INR 16,000-17,000/t. However, despite this, a few scrap buyers are not interested in bidding while some others are buying depending on the semi-finished (ingots/billets) movement.
Moreover, some larger units have slowed down bookings of imported scrap considering the high price fluctuations in domestic scrap along with a longer lead time. Current offers for HMS 80:20 of Middle East-origin are at $585-590/tonne which translate into a landed cost of INR 48,700-49,100/t DAP Mandi Gobindgarh.
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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