SteelMint: Domestic scrap index rises INR 100/t d-o-d

SteelMint's domestic steel scrap (end-cutting) index edged higher by INR 100/tonne (t) to INR 45,400/t DAP Mandi Gobindgarh on 8 October, 2022. The domestic scrap index has remained largely stable over the past 15 days, with fluctuation seen in the range of INR 300/t today.

Some improvement in finished steel prices were recorded in today's trading session, especially in central and western India. In today's morning trade in Mandi Gobindgarh, north India, steel ingots prices opened on a positive note but moved down later on in the day, reaching INR 51,100/t.

It is also being heard that in Mandi and Ludhiana, furnace owners are planning to increase the conversion margin by INR 500/t in the near term.

As a result, furnace owners raised their bid prices for scrap procurement, but there was also a shortage of scrap available.

Market highlights-

End-cutting and ingots spread: In Mandi, the spread between end-cutting scrap and ingots was 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 $430-445/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 39,700/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 16,850/t.

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