SteelMint: Domestic steel scrap index drops INR 700/t tracking correction in semis prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 700/tonne (t) to INR 44,400/t DAP Mandi Gobindgarh on 5 September, 2022.

Amidst uncertain price movements, buyers opted to wait-and-watch, which led to subdued trading in the spot market throughout the day, SteelMint learnt from sources.

Steel ingot prices in Mandi witnessed a downward correction of INR 800/t d-o-d to INR 49,000/t at the time of reporting and price normalisation.

Additionally, weak demand for finished steel products dragged down semi-finished steel prices, which also resulted in a sharp correction in scrap prices.

Shipbreaking melting scrap prices dropped INR 300/t d-o-d in Gujarat's Alang market, SteelMint assessment showed. HMS (80:20) prices are assessed at INR 43,700/t exy.

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, import price gap: Imported melting scrap prices at Nhava Sheva Port were at around $465/t, while local scrap - HMS(80:20) - prices in Mumbai were assessed at INR 41,000/t FOR. Mumbai-based mills and those in the nearby regions are preferring to import scrap as domestic scrap prices are higher by about INR 1,000-1,200/t.

Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billet in Raipur stands at around INR 14,200/t.

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