The domestic steel scrap (end-cutting) index rose INR 700/t to INR 45,200/t DAP Mandi Gobindgarh on 24 September, 2022.
The increased demand for semis and finished steel today trigerred the surge in scrap prices. However, semi-finished steel prices witnessed some correction in the second half of trading today.
In Punjab, heavy rains affected market movement, and loading and unloading were halted.
Steel ingots prices in Mandi Gobindgarh increased by INR 500/t d-o-d to INR 50,500/t at the time of reporting and price normalisation.
According to sources, construction activities will begin by the end of this month, and steel demand and prices may then rise.
Market highlights
End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingot spread improved by INR 200 today to INR 5,700/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $430-450/t, while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 38,500/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 16,100/t. The reason for this is that healthy supply of sponge iron in the spot market, mainly from Odisha, has kept prices under pressure in the central region, and ultimately the rise in sponge iron prices has been lower compared to billet. As a result, billet-makers are enjoying better margins.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – info@steelmint.com.
Leave a Reply