SteelMint’s domestic steel scrap (end-cutting) index increased by INR 400/tonne (t) to INR 47,000/t DAP Mandi Gobindgarh. Increased semi-finished steel prices prompted buyers to raise their bids today.
A few market participants said that finished steel buying inquiries have also improved since the last 2-3 days, especially in patra and rebar products which pushed up semi-finished prices. Meanwhile, semis prices in the surrounding markets are being also offered in the high range, making it unviable.
However, local scrap traders saw limited offers from other state suppliers amidst anticipation of a further rise in prices following the global uptrend.
Furthermore, scrap buyers said that due to adequate supply, the conversion spread from melting scrap to semi-finished (ingots) has further improved from INR 11,700/t to INR 12,000/t. They expect the spread may improve even further due to higher prices.
Today, 10 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 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 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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