SteelMint’s domestic steel scrap (end-cutting) index rose by INR 2,000/tonne (t) to INR 53,000/t DAP Mandi Gobindgarh. The sharp rise in semi-finished steel prices pushed scrap prices higher.
Further, inter-state scrap movement remained limited owing to stringent departmental monitoring of material to prevent unaccountable transactions.
Meanwhile, liquidity in the market is also tight, a scrap trader said.
Shipbreaking melting scrap prices in Gujarat’s Alang market increased by INR 1,500/t d-o-d, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 50,000/t exy.
Further, some re-rollers said the market is worried over power outages due to the coal crisis in 12 states that erupted once again after Oct’21. In the first fortnight of Apr, domestic power demand hit a 38-year high for the month. Andhra Pradesh, Maharashtra, Gujarat, Punjab, Jharkhand and Haryana are facing power cuts ranging from 3% to 8.7%. The private power sector has urged the government to take immediate steps to replenish the coal inventory at thermal power stations to avert the crisis.
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? 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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