SteelMint’s domestic steel scrap (end-cutting) index decreased by INR 550/t at INR 41,450/tonne (t) DAP Mandi Gobindgarh on 8 June 2022.
Prices corrected despite an improvement in trade activity. A deal of around 1,000-1,500 t of end-cutting scrap was concluded at an average price of INR 41,450/t, DAP Mandi.
Around 1,000 t of of Dubai-origin imported material (HMS 90:10) was also booked by a Punbaj-based steel manufacturer at $485/t.
Semi-finished steel prices also witnessed a slight correction in today’s trading session.
SAIL’s auctions from its steel plants based in Rourkela, Durgapur and Bokaro for around 10,500 t pig iron was booked at a average price of INR 43,000/t exw.
Key highlights-
• End-cutting and ingot spread: In general, the end-cutting scrap to ingot spread is around INR 5,000-5,500/t. However, due to the shortage of the material, there is a gap of around INR 6,500-7,000/t DAP Mandi.
• Domestic and imported scrap price gap: Since imported scrap prices are higher by INR 1,500-2,000/t compared to domestic scrap, buyers have changed their preference to the latter. Currently, imported scrap is available at $475/t CNF Nhava Sheva and at $468/t in Chennai. Imports will only be viable for buyers if prices fall by around $10-15/t.
• Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,000/t.
Today, 13 sets of trades, indicative prices/bids/offers were recorded in the publishing window.
The Index also derives the HMS 80:20 scrap (Heavy, Med), and CR busheling scrap prices traded in the region.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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