SteelMint scrap index inches down by INR 100/t amid falling demand

SteelMint's domestic steel scrap (end-cutting) index moved down by INR 100/tonne (t) to INR 43,300/t DAP Mandi Gobindgarh on 18 October, 2022. Today, steel ingots prices in Mandi saw a marginal correction of INR 50/t d-o-d to INR 49,350/t at the time of reporting and price normalisation.

Trading in semi-finished and finished steel remained limited with only need-based purchases taking place. Also, liquidity issues persisted in the market, slowing down buying activity in the market.

HR strip patra (148-200mm, 2mm thick) prices dropped by INR 500/t ($6/t) d-o-d in Raipur and by INR 300/t($4/t) in Mandi Gobindgarh today. Prices stood at INR 50,500/t ($613/t) exw in both locations.

Market highlights-

End-cutting and billet 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 $440-445/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 15,650/t.

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