SteelMint: Domestic steel scrap index drops INR 300/t tracking correction in semis prices
SteelMint’s domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 46,000/t DAP Mandi Gobindgarh on 16 September, 2022. The price discrepancy...
SteelMint's domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 46,000/t DAP Mandi Gobindgarh on 16 September, 2022.
The price discrepancy in the domestic market is due to the lack of demand for finished products and semis, as prices keep decreasing, while domestic scrap prices are rising on a daily basis. Amidst uncertain price movements, buyers took a wait-and-watch approach, which led to subdued trading in the spot market throughout the day, SteelMint learnt from sources.
In the near term, scrap prices are likely to fall. Also, the furnace owners had been forced to run on 50% capacity due to heavy conversion loss from scrap to ingot manufacturing, mainly in Punjab and Gujarat, north India.
Today steel ingot prices in Mandi witnessed a slight correction of INR 300/t d-o-d to INR 50,800/t at the time of reporting and price normalisation.
Other sources informed that ferrous scrap prices are likely to trend downward because of bulk and container steel scrap arriving at plants.
Shipbreaking melting scrap prices dropped INR 700/t d-o-d in Gujarat's Alang market, SteelMint assessment showed. HMS (80:20) prices are assessed at INR 43,000/t exy. However re-rolling material prices have improved.
Market highlights-
End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingot spread remained unchanged today at INR 5,800-6,000/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 39,500/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 15,500/t.
To see SteelMint's Melting Scrap Assessment, pricing methodology and specification documents,Click here
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