SteelMint’s domestic steel scrap (end-cutting) index rose INR 400/tonne (t) to INR 44,600/t DAP Mandi Gobindgarh on 1 September, 2022.
Steel ingots prices in Mandi Gobindgarh increased by INR 300/t d-o-d to INR 49,300/t at the time of reporting and price normalisation.
Scrap prices increased on account of increase in semis’ prices although the trades in semi-finished and finished steel markets remained quiet. Only offer prices were revised throughout the day.
In Gujarat’s Alang market, ship-breaking melting scrap prices were stable today, as per SteelMint assessment. HMS (80:20) prices were assessed at INR 44,000/t exy.
HR strip (patra) price inched up by INR 200/t ($3/t) d-o-d in key markets on 1 September, 2022 despite poor demand. Current base grade patra (148-200mm, 2mm thick) prices stand at INR 50,700/t ($637/t) exw-Raipur and exw-Mandi, excluding GST at 18%.
Market highlights
End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingot spread remained unchanged today at INR 5,800-6,000/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $465-485/t while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 41,000/t. Mumbai-based mills and those in the nearby regions preferred to import scrap as domestic material is costlier by INR 2,000-3,000/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 14,150/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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