SteelMint’s domestic steel scrap (end-cutting) index fell by INR 800/tonne (t) to INR 46,000/t DAP Mandi Gobindgarh on 23 Aug, 2022.
LMS (light melting scrap) prices were assessed at INR 41,000/t, HMS 80:20 at INR 43,700/t and CR busheling scrap at INR 47,200/t today.
Amidst uncertain price movements, buyers opted for a wait-and-watch approach, which led to subdued trading in the spot market throughout the day, SteelMint learnt from sources.
Steel ingot prices in Mandi witnessed a slight correction of INR 600/t d-o-d to INR 50,700/t at the time of reporting and price normalisation.
Additionally, weak demand for finished steel products dragged down semi-finished steel prices, which also resulted in a sharp correction in scrap prices.
Re-rollers informed that due to falling steel prices, retailers may wait and watch which could further slow down scrap buying enquiries in the near term.
Traders expect ferrous scrap prices to remain under downward pressure because of bulk steel scrap arriving at Indian ports.
Other market updates
End-cutting and ingot spread: The end-cutting scrap and ingot spread remained unchanged today at INR 5,500-6,000/t.
Domestic and imported scrap price gap: In Mumbai, melting scrap imported from Europe (HMS 1&2) was traded yesterday at $478/t, while Dubai scrap was sold at $493/t CNF Nhava Sheva. Mumbai-based mills and those in the nearby regions prefer to import scrap because domestic material is costlier by about INR 4,000/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 14,000/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents,Click Here
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