SteelMint: Mandi scrap index edges lower amid sluggish semis sales

SteelMint's domestic steel scrap (end-cutting) index fell by INR 800/tonne (t) to INR 44,600/t DAP Mandi Gobindgarh on 20 September, 2022.

The main impact was seen in the light melting scrap (LMS) and HMS (80:20); buyers booked at the rate that the Mandi Scrap Association had fixed in its morning message sent to market participants. In general, old scrap (LMS) is booked at INR 700-1,000/t higher than the Association's prices. But, today buyers booked at INR 300-400/t higher, while ingot prices also corrected, which directly impacted the scrap prices.

Amid an unclear outlook, buyers and sellers opted for a wait-and-watch mode.

Today, steel ingot prices in Mandi witnessed a slight correction of INR 600/t d-o-d to INR 49,700/t at the time of reporting and price normalisation.

Re-roller sources informed that due to falling steel prices, retailers may choose a wait-and-watch strategy, which could further slow down scrap buying inquiries in the near term.

Market highlights

End-cutting and ingot spread:The end-cutting scrap and ingot spread prices in Mandi decreased by INR 200 to INR 5,500/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 39,000/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 15,350/t.

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