SteelMint's domestic scrap index stays flat on soft steel demand

SteelMint's domestic scrap index remains stable as the market fluctuated in the range of INR 300/tonne today, while end-user demand for steel continued to remain limited. Notably, the index has remained stable over the last few days.

In today's morning trade in Mandi Gobindgarh, steel ingots prices opened on a positive note but witnessed correction later on in the day, reaching INR 51,000/t subsequently.

Domestic semis and finished products prices improved by INR 200-500/t, but that has had no perceptible effect on scrap prices. The demand for steel is still below moderate.

Scrap prices remained under pressure in the domestic market due to the arrival of 200,000 t of bulk imports at ports last month. Another 1.5 mnt of scrap is expected to arrive by the end of October.

Market highlights:

End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingots 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 $430-445/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 39,200/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 16,800/t.

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