SteelMint’s domestic steel scrap (end-cutting) index rose INR 350/tonne (t) to INR 45,000/t DAP Mandi Gobindgarh on 7 September, 2022.
Steel ingots prices in Mandi Gobindgarh increased by INR 500/t d-o-d to INR 49,800/t at the time of reporting and price normalisation.
Re-rollers in Mandi Gobindgarh today went on a two-day strike against rising PNG prices which ultimately pushed their operating expenses higher. Further, due to limited demand for finished steel products amid the ongoing strike, semi-finished transactions fell in the market today. However, tight supply of scrap prompted the induction furnace mill to raise their semi-finished steel prices on d-o-d basis.
Except for the Mandi and Raipur markets, all other domestic markets remained stable or saw prices dropping in the range of INR 300-500/t due to lack of steel demand.
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 $465-475/t (INR 39,700/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/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 14,850/t.
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