SteelMint’s domestic steel scrap (end-cutting) index rose INR 1,500/tonne (t) to INR 49,500/t DAP Mandi Gobindgarh on 3 Mar’22.
The key factor supporting this substantial hike on a d-o-d basis was improved demand in semi-finished steel amidst marginal price enhancement in sponge iron prices, following the uptrend in fuel prices.
However, a few scrap traders informed that demand for high-grade scrap, for instance CR busheling, was trending lower on higher material costs and lack of demand from re-rollers.
In line, scrap of usual grade was being offered at adequate levels and traders are getting better realisations in view of current prospects.
Further, a scrap buyer source reported that buyers are currently maintaining raw material (melting scrap) for five-seven days only due to uncertain trade dynamics.
Meanwhile, a few trade participants informed that furnace associations may alter the basic conversion spread from melting scrap to steel ingot from the existing level i.e. INR 12,000/t to 12,500/t. However, this is yet to be confirmed.
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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