SteelMint's domestic scrap index rises INR 600/t as semi-finished steel prices increase

SteelMint's domestic steel scrap (end-cutting) index rose INR 600/tonne (t) to INR 44,900/t DAP Mandi Gobindgarh on 30 December, 2022.

The index rose as semi-finished steel demand improved in today's trading session, while trades in finished material were still limited.

Steel ingots prices in Mandi Gobindgarh increased by INR 500/t d-o-d to INR 49,900/t at the time of reporting and price normalisation.

According to a trader, scrap availability in Mandi Gobindgarh is very limited, and mills are unable to get enough of the material.

Snapshots of other markets

Alang: Shipbreaking melting scrap prices in Gujarat's Alang market decreased by INR 600/t d-o-d on 30 Dec'22, as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 38,000/t exy. Semi-finished steel prices fell in the yesterday's trading session in all the key markets, and limited trading activities at current price levels for scrap resulted in suppliers reducing their offers today.

Jalna: In western India-based Jalna market, billets and rebars prices remained stable today, while HMS 80:20 prices decreased by INR 400/t to INR 38,200 DAP.

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 $417-419/t (including freight, it comes to approximately INR 36,800/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 38,000/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 14,550/t.

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

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