SteelMint: Benchmark scrap index remains stable for third consecutive day

SteelMint's scrap index remains range bound with slight fluctuations of +/- INR 200-300/t since the last three days amid muted steel demand from end-users.

On 9 September, 2022, the end-cutting index remained stable at INR 45,000/t DAP Mandi Gobindgarh. However, scrap shortage still exists in the market.

Amid an unclear outlook, buyers and sellers opted to wait-and watch.

Due to the Hindu festival Anant Chaturdashi, most markets in Telengana and Maharashtra were closed today.

Shipbreaking melting scrap prices in Gujarat's Alang fell by INR 400/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 43,000/t exy. Prices of semi-finished steel and scrap remained rangebound since the past few days and limited trade was witnessed, which is keeping scrap prices under pressure.

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 $455/t (the FOR Mumbai price is INR 38,400/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 40,000/t. The Mumbai-based mills and those in the nearby regions preferred to import scrap as domestic material remains costlier by around INR 1,500-2,000/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 15,050/t.

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

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