SteelMint’s domestic steel scrap (end-cutting) index fell by INR 600/tonne (t) to INR 42,700/t DAP Mandi Gobindgarh on 10 December 2022.
Today, steel ingots prices in Mandi saw a sharp correction of INR 700/t d-o-d, falling to INR 47,600/t at the time of reporting and price normalisation.
According to a scrap trader, scrap availability in Mandi Gobindgarh is very poor, and mills are unable to get enough scrap. A shortage of vehicles also prevents material from coming outside the state market.
Moreover, a very poor sales situation resulted in most furnaces operating 12 hours a day. There are also liquidity issues in the market, which are hindering spot trades.
Market highlights–
End-cutting and billet spread: In Mandi, the end-cutting scrap and billets 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 $412-420/t (including freight, which comes to approximately INR 36,800/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,500/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 13,100/t.
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