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

The domestic steel scrap (end-cutting) index remained stable at INR 45,400/t DAP Mandi Gobindgarh on 28 September, 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.

The Maharashtra and Gujarat markets remained stable, sometimes witnessing a drop of INR 200-300/t in prices due to the lack of demand for finished steel.

Scrap prices in Gujarat's Alang increased by INR 800/t d-o-d. HMS (80:20) prices are assessed at INR 42,000/t exy.

Market highlights:

End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingot spread remained unchanged today at INR 5,500-5700/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $440-450/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 39,500/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 16,550/t.

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