India: SteelMint's scrap index dips by INR 100/t on low demand for semis

SteelMint's domestic steel scrap (end-cutting) index inched down by INR 100/t to INR 42,600/t DAP Mandi Gobindgarh on 20 December, 2022.

Low demand for semi-finished steel and finished products put downward pressure on scrap prices.

Today, steel ingots prices in Mandi fell by INR 100/t d-o-d to INR 47,600/t at the time of reporting and price normalisation.

A market source said: "There are liquidity issues in the market due to poor demand in semis and finished material, which are hindering spot trades. Meanwhile, domestic scrap supply is still limited."

However, except Mumbai market, in all other regions, scrap prices either remained stable or showed some downtrends.

Snapshots of other markets-

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 20 December, 2022. As per SteelMint's assessment, HMS (80:20) prices are assessed at INR 38,100/t exy. Limited semis trade was seen in the key markets of northern and western India in yesterday's session. However, moderate buying inquiries for scrap at current prices prompted suppliers to keep offers stable.

Hyderabad: Today, semis' prices in southern India's Hyderabad market moved down by INR 500/t to INR 46,000/t, while HMS 80:20 scrap prices remained stable at INR 35,500/t on account of moderate demand. On the other hand, rebars prices decreased by INR 500/t to INR 51,000/t DAP.

Price highlights-

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 5,000-5,200/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $420-422/t (including freight, it comes to approximately INR 36,900/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,500/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 13,450/t.

To see SteelMint's Melting Scrap Assessment, pricing methodology and specification documents, Click here

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