SteelMint's benchmark scrap index drops INR 600/t

SteelMint's domestic steel scrap (end-cutting) index fell by INR 600/tonne (t) to INR 42,700/t DAP Mandi Gobindgarh on 10 December 2022.

Today, steel ingots prices in Mandi saw a sharp correction of INR 700/t d-o-d, falling to INR 47,600/t at the time of reporting and price normalisation.

According to a scrap trader, scrap availability in Mandi Gobindgarh is very poor, and mills are unable to get enough scrap. A shortage of vehicles also prevents material from coming outside the state market.

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.

Market highlights-

End-cutting and billet spread: In Mandi, the end-cutting scrap and billets spread is at around INR 6,000-6500/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $412-420/t (including freight, which comes to approximately INR 36,800/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,500/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 13,100/t.

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

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.