SteelMint: Domestic steel scrap index inches down tracking semis prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 45,000/t DAP Mandi Gobindgarh on 12 October, 2022. Today, steel ingots prices in Mandi saw a marginal correction of INR 200/t d-o-d to stand at INR 50,700/t at the time of reporting and price normalisation.

The semi-finished and finished steel trade in the region remained way below the moderate levels, with only need-based purchases taking place. Moreover, liquidity issues also persisted in the market which made it difficult for smooth transactions to take place.

Market highlights-

End-cutting and ingots spread: In Punjab, the spread between end-cutting scrap and ingots was unchanged at INR 5,500-5,700/t today.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $438-445/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 16,550/t.

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