SteelMint: Domestic steel scrap index drops INR 200/t tracking correction in semis prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 45,400/t DAP Mandi Gobindgarh on 19 September, 2022.

The price discrepancy in the domestic market is due to the lack of demand for finished products and semis, as prices kept decreasing. Buyers took a wait-and-watch approach, which led to subdued trading in the spot market throughout the day, SteelMint learnt from sources.

Ship-breaking melting scrap prices in Gujarat's Alang fell by INR 1,000/t d-o-d on 19 September, as per SteelMint assessment. Prices of HMS (80:20) are assessed at INR 42,000/t exy.

Today, steel ingot prices in Mandi witnessed a slight correction of INR 200/t d-o-d to INR 50,300/t at the time of reporting and price normalisation.

Other sources informed that the ferrous scrap prices are likely to trend downward because of bulk and container steel scrap arriving at plants.

Market highlights-

End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingot spread prices stand today at around at INR 5,700-6,000/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $435-450/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 39,200/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 15,400/t.

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

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