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

The domestic steel scrap (end-cutting) index remained stable at INR 42,400/t DAP Mandi Gobindgarh on 01 November, 2022.

As the domestic scrap market fluctuated in the range of +/- 200 INR/t, SteelMint's scrap index remained stable throughout the day, while end-user demand for steel continued to remain limited.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note in today's morning trade, but ended at their previous levels in the second half of the trading session.

In Gujarat, semis' prices increased by INR 100/t today, while in Maharashtra, prices dropped by INR 200/t due to lack of demand for finished steel.

In Gujarat's Alang market, shipbreaking melting scrap prices remain stable today, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 40,500/t exy.

Market highlights-

End-cutting and billet spread: In Mandi, the end-cutting scrap and billets spread remained unchanged today at INR 5,500-5800/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $415-420/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 37,200/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 14,750/t.

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