SteelMint’s domestic steel scrap (end-cutting) index moved up by INR 500/tonne (t) to INR 38,100/t DAP Mandi Gobindgarh.
The key factor supporting this marginal hike was the price improvement in semi-finished steel amid tighter supply.
In line with the price rise, a few scrap traders held on to their offers in anticipation that the market would be on the positive side which would allow them to get better realisation.
Further, scrap arrival is lessening on a d-o-d basis. Simultaneously, furnace units are increasingly relying only on their inventories which may contract their conversion spread in the short run. This may force these units to reduce capacity utilisation, said a few standalone furnaces.
Meanwhile, re-rollers said that lack of material movement in local markets as well as supply disruption in the Delhi/NCR region amid the ban in construction activities may weigh down finished steel offers for the short term.
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? 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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