SteelMint's scrap index continues to edge down amid lower semis prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 600/tonne (t) to INR 41,300/t DAP Mandi Gobindgarh on 4 November, 2022.

In today's morning trade in Mandi Gobindgarh, steel ingots prices opened on a negative note but witnessed improvement later on in the day, reaching INR 47,300/t at the time of reporting and price normalisation.

Due to the continued drop in steel prices, scrap prices also dropped. However, suppliers were not ready to sell at the lower levels. Hence, to secure the required amount of scrap, Mandi mills had to increase prices of semi-finished steel.

Moreover, liquidity issues also persisted in the market which made it difficult for smooth transactions to take place.

HR strip patra (148-200mm, 2mm thick) prices declined by INR 900/t to INR 48,300/t exw in Raipur, while prices fell by INR 600/t to INR 49,400/t in Mandi Gobindgarh, excluding GST at 18%.

Market highlights-

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread remained unchanged today at INR 5,500-5,800/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $405-410/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,700/t.

Raipur sponge iron-billets spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,300/t.

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