SteelMint's scrap index climbs INR 700/t amid rising bids

SteelMint's domestic steel scrap (end-cutting) index rose by INR 700/t to INR 42,300/t DAP Mandi Gobindgarh on 7 December, 2022.

The index moved up as scrap buyers raised their bids to secure adequate quantities backed by a marginal rise in semi-finished steel prices. Ingots prices in the Mandi market rose by INR 500/t to INR 47,400/t DAP at the time of reporting and price normalisation.

In Mandi, the semi-finished and finished steel markets saw limited activity, with only need-based purchases taking place. However, tight supply of scrap and limited offers by traders supported scrap prices.

HR strip patra (148-200mm, 2mm thick) prices inched up by INR 300 to INR 48,400/t exw Mandi Gobindgarh, while prices increased by INR 500/t to INR 47,000/t exw in Raipur, excluding GST at 18%.

Snapshots of other markets-

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 300/t d-o-d today. As per SteelMint's assessment, HMS (80:20) prices are assessed at INR 39,300/t ex-yard. An uptick in semi-finished steel prices yesterday and moderate buying interest from the induction furnace steel mills in Bhavnagar, Gujarat, supported scrap offers.

Jalna: In western India-based Jalna market, billets and rebars prices increased by INR 500/t today, while HMS 80:20 prices improved by INR 1,100/t to INR 38,100 DAP. This is due to limited availability of scrap amid transportation issues there.

Market highlights-

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread is at around INR 6,000-6500/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $408-415/t (including freight, which comes to approximately INR 35,700/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,300/t.

Raipur sponge iron-billets spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 13,500/t.

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

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