India: SteelMint's benchmark scrap index remains stable even as supplies recover

The domestic steel scrap (end-cutting) index remained stable at INR 44,200/t DAP Mandi Gobindgarh on 22 September, 2022.

The price discrepancy in the domestic market is due to the lack of demand for finished products and semis, as prices keep decreasing.

Steel ingots in Mandi opened on a negative note today and dropped from INR 49,500 to INR 49100 t, but then again improved to INR 49500/t at the time of reporting and price normalisation.

Amid uncertain price movements, buyers took a wait-and-watch approach, which led to subdued trading in the spot market throughout the day, SteelMint learnt from sources.

Other sources informed that ferrous scrap prices are likely to trend downward because of bulk and container steel scrap arriving at plants.

Market highlights-

End-cutting and ingot spread: The end-cutting scrap and ingot spread in Mandi decreased by INR 200/t to INR 5,500/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $430-450/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 38,500/t.

Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 15,600/t.

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