As the market fluctuated in the range of +/- 200 INR/t, SteelMint’s scrap index remained almost constant throughout the day, while end-user demand for steel remained muted.
The domestic steel scrap (end-cutting) index improved slightly by INR 50/tonne (t) to INR 45,100/t DAP Mandi Gobindgarh on 3 September, 2022.
As buyers and sellers couldn’t get accurate market predictions, they had no choice but to wait and watch.
However, according to a few sources, a few mills are being checked for GST to prevent unaccountable transactions, which resulted in traders from outside Punjab moving to other states.
Indian mills booked around 500,000 t of bulk scrap since June of which 60,000 t arrived at Chennai port and 25,000 t at Kandla port. The arrival of bulk steel scrap at Indian ports is expected to keep ferrous scrap prices under pressure, SteelMint learnt from sources.
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, 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 billet 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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