SteelMint: Domestic scrap index rises INR 400/t as semi-finished steel prices inch up

SteelMint's domestic steel scrap (end-cutting) index rose by INR 400/tonne (t) to INR 44,600/t DAP Mandi Gobindgarh on 28 December, 2022.

The index inched up as semi-finished steel demand improved in today's trading session. But finished steel demand remains limited.

Steel ingots prices in Mandi Gobindgarh inched up by INR 400/t d-o-d to INR 49,600/t at the time of reporting and price normalisation. In the first half of today's trading session the market opened on a positive note, but surprisingly in the second half no major movement was seen in prices of semis.

Ingots prices in almost all the key markets increased by up to INR 600/t today.

Snapshots of other markets

Alang: In Gujarat's Alang market, ship-breaking melting scrap prices remained stable today, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 38,600/t exy. Moderate trades were observed in semis and finished steel during the last trading session and active buying enquiries for scrap in the region with good availability of material prompted suppliers to keep their offers stable today.

Chennai: In south India's Chennai market billets prices increased by INR 500/t to INR 48,000/t, while rebar and scrap prices remained stable today. HMS 80:20 prices are assessed at INR 34,500 DAP.

Price highlights

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 5,000-5,200/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $419-425/t (including freight, it comes to approximately INR 37,400/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 38,000/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,450/t.

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