SteelMint’s domestic steel scrap (end-cutting) index rose further by INR 1,600/t to INR 51,500/t DAP Mandi Gobindgarh on 29 Apr’22.
The price correction in semi-finished steel (ingots/billets) amidst moderate trade in finished steel prompted buyers to adjust their bids to maintain conversion spreads.
The market was nearly closed today due to a power cut announced this morning in Mandi Gobindgarh for industrial units including induction furnaces and rolling mills. “The slowdown in EAF production is hurting demand,” a scrap trader source told SteelMint.
According to market players the power cut could lead to a slight reduction in prices of sponge iron and scrap. However, ingot prices may not fall much.
The Index 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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