SteelMint: Domestic steel scrap index recovers on rise in semis' demand

The domestic steel scrap (end-cutting) index improved by INR 300/t to INR 44,500/t DAP Mandi Gobindgarh on 23 September, 2022.

During today's trading session, the first half of the market was on a stable path, but after that, demand for semis increased suddenly. On the other hand, demand for finished steel remained weak.

Steel ingots prices in Mandi Gobindgarh increased by INR 250/t d-o-d to INR 49,800/t at the time of reporting and price normalisation.

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

Other sources informed that 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 remained unchanged today at INR 5,500/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $430-450/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 38,500/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 15,800/t.

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