SteelMint’s domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 40,900/t DAP Mandi Gobindgarh on 4 Dec’21. Price correction in semi-finished steel (ingots/billets), sponge iron and imported coal resulted in lower bids today.
However, a few semi-finished steel manufacturers said that scrap arrival has improved marginally in the last few days but the conversion spread is still range-bound.
Further, reliable sources informed that a few sporadic transactions of scrap have been concluded to the other markets amidst strict administration checkings in the local market to crack down on unaccountable transactions.
The market may remain slightly dull in the near term on weak trading due to:
(i) limited finished steel buying inquiries,
(ii) implementation of night curfew and weekend lockdown in the local and neighbouring markets.
Today, 12 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 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 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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