SteelMint’s domestic steel scrap (end-cutting) index fell to its lowest level in five months at INR 41,000/tonne (t) DAP Mandi Gobindgarh on 26 May 2022.
In today’s trading session, all market participants (traders, buyers and sellers) remained inactive, observing the trends.
Scrap prices dropped as the market turned bearish due to weak buying interest from end-users of finished steel products. Steelmakers are currently focussing on clearing their inventory and collecting previous deals’ payments.
Standalone re-rollers decreased their bids for semi-finished steel, increasing selling pressure on induction furnace (ingots) producers. Trade sources are expecting a further correction in prices in the near term.
Today, 12 sets of trades, indicative prices/bids/offers were recorded in our 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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