SteelMint’s domestic steel scrap (end-cutting) index rose INR 900/tonne (t) to INR 46,600/t DAP Mandi Gobindgarh on 28 Feb’22.
The sharp price rise in prices of ingot/billet and the conversion spread impact pushed scrap prices higher.
Scrap buyers are not willing to book material with the expectation of a fall in semi-finished steel prices.
Further, the basic conversion spread from melting scrap to steel ingot has improved by INR 11,700/t from the existing INR 11,500/t and is expecting to reach INR 12,000/t in the short term.
Today, 11 sets of trades, indicative prices/bids/offers were recorded in the publishing window.
In addition, the index derives the HMS 80:20 scrap (Heavy, Med) and CR bushiling 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 spot market. The data obtained by SteelMint are normalised for yield, dimension, density, location and other terms of trade as regards specifications.
Why this index? In order to bring more transparency in domestic scrap prices in India, SteelMint has adopted this robust methodology to ascertain 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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