SteelMint’s domestic steel scrap (end-cutting) index increased by INR 600/tonne (t) to INR 39,600/t DAP Mandi Gobindgarh on 30 Nov’21. Improved demand and healthy deals for semi-finished steel products supported scrap prices.
Others factors that impacted the price rise:
- Limited scrap supply: Supply shortage still exists in the market. However, a few traders are expecting that scrap arrival may improve from next week on better realisation.
- Finished steel demand picks up: Several re-rollers said that finished steel demand has seen a recovery in the last few days following the uptrend in semi-finished prices.
- Correction in conversion spread: Officials from a furnace association said the basic conversion spread from melting scrap to ingots has corrected and currently stands at INR 11,500/t as against the previous INR 12,400/t.
- Production cuts by furnaces: Due to scrap supply shortage, many standalone and hot charging steel units have cut their production and are currently running a single shift for 10-12 hours only.
Today, 15 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? 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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