SteelMint: Domestic benchmark scrap index stable amid supply shortage

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

On 8 September, 2022, the end-cutting index remained stable at INR 45,000/t DAP Mandi Gobindgarh. However, scrap shortages still exist in the market.

Amid this unclear outlook, buyers and sellers have opted for a wait-and-watch strategy.

However, Gujarat, Chhattisgarh, and Maharashtra's Jalna markets experienced an improvement in TMT demand.

Ship-breaking melting scrap prices in Gujarat's Alang market increased further by INR 200/t d-o-d, as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 43,400/t ex-yard. Suppliers hiked offers on the back of rising semi-finished steel prices in yesterday's trading session.

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 $460-465/t (the FOR Mumbai price is INR 39,250/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 700-1,000/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 14,750/t.

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

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