SteelMint's domestic scrap index rises INR 500/t as semi-finished steel prices increase

SteelMint's domestic steel scrap (end-cutting) index rose INR 500/tonne (t) to INR 45,600/t DAP Mandi Gobindgarh on 2 January, 2022.

The index rose as semi-finished and finished steel demand and prices improved in today's trading session.

Steel ingots prices in Mandi Gobindgarh increased by INR 400/t d-o-d to INR 50,500/t at the time of reporting and price normalisation. Prices in almost all the key markets have increased by up to INR 1,500/t today.

HR strip patra (148-200mm, 2mm thick) prices improved by INR 700 to INR 51,000/t exw-Raipur, while prices increased by INR 500/t to INR 51,300/t exw in Mandi Gobindgarh, excluding GST at 18%.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 500/t d-o-d, as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 39,000/t ex-yard. Prices of semi-finished steel rose during the last trading session and active buying interest from the induction furnace-based mills in Bhavnagar, Gujarat, prompted suppliers to hike their offers today.

Hyderabad: Today, prices of semis in south India's Hyderabad market moved up by INR 1,000/t to INR 49,000/t, while HMS 80:20 scrap prices remained stable at INR 36,300/t on account of moderate demand. On the other hand, rebar prices increased by INR 500/t to INR 53,500/t exw.

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 $423-425/t (including freight, which equates to approximately INR 37,300/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 (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 15,050/t.

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