SteelMint’s domestic steel scrap (end-cutting) index fell by INR 1,500/tonne (t) to INR 50,800/t DAP Mandi Gobindgarh on 22 April 2022.
Falling semi-finished steel (ingots/billets) prices due to lack of demand from the re-rolling mills have put scrap prices under pressure today.
Buyers are reluctant to make scrap bookings owing to decreasing semi-finished prices alongside poor market conditions for finished steel products. Suppliers, on the other hand, are also not in a hurry to float fresh offers. “The market is quiet as both buyers and sellers are in a wait-and-see mode”, a source said.
Scrap supply in the market has improved slightly over the last 2-3 days with offers being on a higher side. This propelled traders to liquidate their stocks before prices correct further.
The cash flow is also a concern in the market as buyers who previously used to make payment within one week are now paying after 15-20 days of the sale.
Today, 14 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 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? India’s National Steel Recycling policy mentioned that the efficient use of scrap for steel production becomes very crucial for India as 35-40% share has been envisaged from scrap-based steel production in the journey of 300 mn t pa by 2030. 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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