As the domestic scrap 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 limited.
The domestic steel scrap (end-cutting) index remained stable at INR 45,200/t DAP Mandi Gobindgarh on 12 September, 2022.
Steel ingots prices in Mandi Gobindgarh were also stable at INR 50,000/t at the time of reporting and price normalisation.
There is scrap shortage in the market which limited any major fall in ingot prices. However, if scrap availability improves, a sharp correction of around INR 1,000-1,500/t in ingot prices is expected.
Ship-breaking melting scrap prices in Gujarat’s Alang market inched lower by INR 200/t d-o-d on 12 September. HMS (80:20) prices are assessed at INR 43,200/t exy.
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 and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $455-470/t (INR 39,600/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 40,000/t. The Mumbai-based mills and those in the nearby regions preferred to import scrap as domestic material remains costlier by around INR 300-500/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 15,400/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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