SteelMint’s domestic steel scrap (end-cutting) index moved up by INR 200/tonne (t) to INR 40,200/t DAP Mandi Gobindgarh on 16 Dec’21.
Stability in semi-finished (ingot/billet) steel and sponge iron prices kept melting scrap prices range-bound today. Inadequate supply seems to be supported domestic scrap prices, SteelMint learnt from market sources.
A few sellers held their offers as they were anticipating an uptrend in the market which would have allowed them to extract more profits from trade, given the prevailing conversion spread.
Moreover, finished steel demand remained subdued. This, despite the fact that mills, especially units that specialise in structural steel products, are utilising just about half their total production capacity. Pressure is building on these mills to suspend operations till demand improves.
Today, 12 sets of trades, indicative prices/bids/offers were recorded in the publishing window.
The index also derives from the HMS (80:20) and CR sheet cutting 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 India scrap index – SteelMint’s assessment of Mandi scrap reflects the prices of different melting HMS grades 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 normalised for yield, dimension, density, location and other terms of trade to the specifications.
Why this index? India’s National Steel Recycling policy mentions that the efficient use of scrap for steel production is crucial for India as 35-40% share of total steel production of 300 mn t/year by 2030 will be scrap-based. 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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