SteelMint’s domestic steel scrap (end-cutting) index rose INR 450/tonne (t) to INR 45,050/t DAP Mandi Gobindgarh on 2 September, 2022.
There was scarcity of local scrap which supported the hike in prices. Imported scrap delivery also commenced but was not able to fulfill the needs of the Mandi-based mills.
SteelMint heard that a few large mills are planning to reduce prices of finished steel by INR 1,500-2,000/t for September deliveries. Amidst a hazy market outlook buyers and sellers opted to wait and watch.
Market highlights-
End-cutting and ingot spread: In Mandi, the spread between end-cutting scrap and ingot remained unchanged today at INR 5,800-6,000/t.
Domestic, import price gap: Imported melting scrap prices at Nhava Sheva Port were at around $465/t, while local scrap – HMS(80:20) – prices in Mumbai were assessed at INR 41,000/t FOR. Mumbai-based mills and those in the nearby regions are preferring to import scrap as domestic scrap prices are higher by about INR 1,000-1,200/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 14,300/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents,Click here
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