SteelMint: Domestic scrap index remains stable for five consecutive days

SteelMint's domestic scrap index remained stable throughout the day as the market fluctuated in the range of INR 300/tonne, while end-user demand for steel continued to remain limited. The index has remained stable for five consecutive days.

Prices of steel ingots in Mandi Gobindgarh opened on a negative note in today's morning trade, but ended at their previous levels in the second half.

In Maharashtra, semis' prices increased by INR 500/t today, while in Gujarat, prices dropped by INR 200-300/t due to lack of demand for finished steel.

Scrap prices remained under pressure in the domestic market, due to the arrival of 2 lakh tonnes of bulk scrap at Indian ports this month. Around 1.5 million tonnes (mnt) of scrap are expected to arrive by the end of October.

Market highlights:

End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingot spread remained unchanged today at INR 5,500-5700/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $438-448/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 39,500/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 16,500/t.

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