India: SteelMint's scrap index drops tracking correction in semis prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 800/tonne (t) to INR 44,800/t DAP Mandi Gobindgarh on 29 August 2022.

Steel ingot prices in Mandi witnessed a downward correction of INR 800/t d-o-d to INR 49,500/t at the time of reporting and price normalisation.

Weak demand for finished steel products dragged down semi-finished steel prices, which also resulted in a sharp correction in scrap prices.

Re-rollers informed that due to falling steel prices, retailers may wait and watch which could further slow down scrap buying enquiries in the near term.

Ship-breaking melting scrap prices in Gujarat's Alang dropped marginally by INR 100/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 44,600/t exy.

Market highlights -

End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingot spread remained unchanged today at INR 5,800-6,000/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $460-490/t, while local scrap - HMS(80:20) - prices in Mumbai were assessed at INR 42,000/t. Mumbai-based mills and those in the nearby regions are preferring to import scrap as domestic scrap prices are higher by about INR 2,500-3,000/t.

Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billet in Raipur stands at around INR 13,800/t.

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

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