SteelMint’s domestic steel scrap (end-cutting) index moved up INR 100/tonne (t) to INR 41,800/t DAP Mandi Gobindgarh on 15 Jan’22.
The key factor boosting scrap prices are improved sponge iron and semi-finished steel trades today.
However, participants observed that scrap supply seems slightly disturbed over the last three to four days from the surrounding markets due to bad weather.
Buyers shared with SteelMint that they were only willing to procure ready material with delivery within a day or two.
Further, today’s iron ore auction conducted by OMC saw improved bids with active participation of buyers and this is expected to support scrap prices in the short term.
Meanwhile, the difference between domestic and imported scrap on landed cost basis is narrowing. Current offers for HMS (80:20) of Middle East origin are at $488-490/tonne (t) which translates into a landed cost of INR 39,000-39,200/t DAP. This contrasts with the current price of domestic scrap at INR 38,200-38,500/t.
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 Sheet cutting prices traded in the region.
Scrap Grade and Spread Calculation: (MandiGobindgarh)
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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