The Steel Index launches Indian HR coil price index

MUMBAI (Scrap Register): The Steel Index (TSI) has annnounced the launch of an Indian HR coil index tracking domestic prices in the Mumbai region.

 

The launch is in response to a growing appetite from Indian steel buyers and sellers for reliable spot price information in an increasingly volatile market. At close to 80 million tonnes of crude steel production in 2013, India has consolidated its place as the world’s fourth largest steel producer.

 

The launch of an Indian HR coil price index represents a significant addition to TSI’s existing portfolio of steel benchmarks,” noted Vaseem Karbhari, TSI Senior Analyst in London. “TSI’s market engagement in the prominent Mumbai trading region showed participants were keen to adopt an index which reflected their market experience to aid key decision-making processes.”

 

“After over a year of development and validation, we are delighted to be able to bring to the Indian market an index compiled using the same robust methodology we apply to our other steel indices world-wide,” added Karbhari. 

 

“This gives buyers and sellers the confidence to base their negotiations, price structures and decision-making on this index. Indian steel producers are already able to hedge raw material price fluctuations using iron ore swaps and futures settled using TSI’s iron ore index. This finished steel index will add further opportunities to improve efficiencies through the use of index-linked pricing approaches and, in due course, steel price risk management,” he said