SteelMint: Benchmark scrap index drops INR 400/t on falling demand

SteelMint's domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 43,200/t DAP Mandi Gobindgarh on 27 October, 2022.

In Mandi, steel ingots prices rose marginally by 200 INR/t d-o-d today, settling at 49,200/t at the time of reporting and price normalisation.

Since 24 October the market has remained closed. It will become active after the end of this month when the real market trends become clearer.

The semi-finished and finished steel trade in the region remained way below moderate levels, with only need-based purchases taking place.

Moreover, liquidity issues also persisted in the market which made it difficult for smooth transactions to take place.

Market highlights

End-cutting and Billets spread: In Punjab, the spread between end-cutting scrap and billets was unchanged at INR 5,500-5,700/t today.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $425-440/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 37,800/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 15,200/t.

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