SteelMint's domestic scrap index remains almost flat amid tight supply

SteelMint's domestic scrap index remained stable as the market fluctuated in the range of INR 300/tonne today, while end-user demand for steel continued to remain limited. End-cutting scrap fell by INR 100/tonne (t) to INR 41,400/t DAP Mandi Gobindgarh on 1 December, 2022.

In today's morning trade in Mandi Gobindgarh, steel ingots prices opened on a positive note but witnessed downward correction later in the day, reaching INR 48,700/t.

Although scrap supply is still limited in Mandi due to poor demand for semis, the market shows some negative trends in the second half of the session.

Except for the Maharashtra region and Chennai, semis' prices in all other markets either decreased or remained stable.

Snapshots of other markets-

Alang: Alang's ship-breaking melting scrap market remained closed today due to the scheduled phase I state Assembly elections.

Maharashtra: In Maharashtra region, semis and rebar prices improved by INR 700/t on account of improvement in demand while HMS 80:20 prices edged up by INR 500/t to INR 36,800/t due to shortage in material supply.

Chennai: In southern India-based Chennai market, semis' prices increased by INR 200/t to INR 46,500/t, while rebar and scrap prices were stable on account of limited demand in the market.

Market highlights-

End-cutting and billet spread: In Mandi, the end-cutting scrap and billet spread was at INR 6,000-6,500/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at $375-380/t (including freight, which comes to approximately INR 33,100/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 34,700/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 13,300/t.

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