SteelMint's domestic scrap index remains stable despite sluggish demand for semis

SteelMint's domestic scrap index remained stable as the market fluctuated in the range of INR 200/tonne today. Meanwhile, end-user demand for steel continued to remain limited. End-cutting scrap price was recorded at INR 42,300/t DAP Mandi Gobindgarh on 22 December, 2022.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note in today's morning trade, but ended at their previous levels at INR 47,300/t in the second half of the trading session.

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.

However, except the Ludhiana and Raipur markets, scrap prices in all other regions either remained stable or showed some downtrend.

Ship-breaking melting scrap prices in Alang, Gujarat, opened stable d-o-d today, as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 37,600/t exy. Limited buying inquiries for semis in yesterday's trading session, and decent scrap trading volumes at current price levels prompted suppliers in the region to keep their offers stable today.

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 $415-418/t (including freight, it comes to approximately INR 36,800/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,000/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 13,650/t.

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