SteelMint's scrap index rises marginally even as semis demand softens

SteelMint's domestic steel scrap (end-cutting) index moved up by INR 200/t to INR 41,600/t DAP Mandi Gobindgarh on 6 December, 2022.

In morning trade today in Mandi Gobindgarh, north India, steel ingots prices opened on a positive note at INR 47,200/t but inched down later in the day to INR 47,000/t at the time of reporting and price normalisation.

In Mandi, the semi-finished and finished steel markets saw need-based purchases taking place but tight scrap supply and limited offers by traders pushed up scrap prices.

Liquidity issues also persisted in the market, making it difficult for smooth transactions to take place.

Snapshots of other markets-

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, opened stable d-o-d today. As per SteelMint's assessment, HMS (80:20) prices are assessed at INR 39,000/t exy. Despite an increase in semi-finished and finished steel prices in the last trading session, limited buying enquiries for scrap at current prices prompted suppliers to keep their offers stable today.

Raipur: Today, semis prices in central India-based Raipur market moved up by INR 400/t to INR 43,200/t, while rebar prices inched up by INR 200/t to INR 47,500/t. On the other hand, HMS 80:20 scrap prices were stable at INR 38,000/t DAP.

Market highlights-

End-cutting and billets spread: In Mandi, the end-cutting scrap and billet 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 $405-415/t (including freight, which comes to approximately INR 35,700/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 35,700/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 13,200/t.

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

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