SteelMint's benchmark scrap index drops INR 500/t

SteelMint's domestic steel scrap (end-cutting) index fell by INR 500/tonne (t) to INR 42,000/t DAP Mandi Gobindgarh on 15 December 2022. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.

Today, steel ingots prices in Mandi saw a downward correction of INR 450/t d-o-d, falling to INR 47,000/t at the time of reporting and price normalisation.

Moreover, a very poor sales situation resulted in most furnaces operating 12 hours a day. There are also liquidity issues in the market, which are hindering spot trades. Major mills are trying to avoid work in credit.

"There is low demand for finished steel and inventories are continuously increasing, which is creating selling pressure and resulting in the sharp fall in prices," sources informed.

Snapshots of other markets-

Alang: Ship-breaking melting scrap prices declined by INR 500/t d-o-d in Gujarat's Alang market, SteelMint's assessment shows. HMS (80:20) prices are assessed at INR 38,200/t ex-yard. Scrap suppliers in the region reduced their offers considering the downward correction in semi-finished steel prices and limited scrap buying enquiries in yesterday's session owing to weak sentiments in the spot market.

Chennai: Today, semis' prices in southern India's based Chennai market moved down by INR 200/t to INR 46,300/t, while rebar prices decreased by INR 700/t to INR 51,000/t. On the other hand, HMS 80:20 scrap prices were incresed by INR 300/t to INR 33,800/t DAP on account poor supply of scrap material.

Price highlights-

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 5,000-5,200/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $420-422/t (including freight, it comes to approximately INR 36,900/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,300/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 13,350/t.

To see SteelMint's Melting Scrap Assessment, pricing methodology and specification documents, Click here

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