SteelMint domestic scrap index falls by INR 900/t on lower bids - 21 July

SteelMint's domestic steel scrap (end-cutting) index fell by INR 900/t to INR 45,300/t DAP Mandi Gobindgarh.

LMS (light melting scrap) prices were assessed at INR 40,300/t, HMS 80:20 at INR 43,000/t, and CR busheling scrap at INR 46,300/t today.

Steel ingots prices in Mandi witnessed a slight correction of INR 1,000/t d-o-d to INR 50,500/t at the time of reporting and price normalisation.

Prices of shipbreaking melting scrap in Gujarat's Alang market dropped INR 200/t d-o-d on 21 July. Prices of HMS (80:20) are assessed at INR 42,800/t exy.

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

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

Market highlights-

End-cutting and ingot spread: The end-cutting scrap and ingot spread remained unchanged today at INR 5,500-6,000/t.

Domestic and imported scrap price gap: Imported melting scrap is traded at around $440-465/t CNF Nhava Sheva . Mumbai-based mills and those in nearby regions prefer to import scrap because domestic material is costlier by about INR 4,000/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 14,500/t.

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