SteelMint’s scrap index inches up INR 500/t amid supply crunch

SteelMint’s domestic steel scrap (end-cutting) index moved up by INR 500/t to INR 38,500/t DAP Mandi Gobindgarh on 25 November, 2022.

Scrap supply has still not improved in the domestic market. This coupled with a rise in semis prices lifted the index.

Due to the continued drop in steel prices, Mandi mills were unable to procure scrap. Hence, to secure the required amount of scrap, they increased prices of semis. Ingots prices in Mandi rose by INR 400/t d-o-d to INR 43,800/t at the time of reporting and price normalisation.

Meanwhile, HR strip patra (148-200mm, 2mm thick) prices declined by INR 200/t to INR 44,800/t exw in Mandi Gobindgarh, while prices fell by INR 400/t to INR 44,800/t in Raipur, excluding GST at 18%.

Snapshots of other markets–

Alang – Ship-breaking melting scrap prices fell further by INR 300/t d-o-d in Gujarat’s Alang market, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 36,200/t ex-yard. Scrap suppliers in the region reduced their offers considering the correction in semi-finished steel prices and limited scrap buying enquiries in yesterday’s session.

Raipur – Today, Raipur billets prices increased by INR 600/t to INR 40,600/t on the back of moderate demand for finished steel material.

Market highlights–

End-cutting and billet spread: In Mandi, the end-cutting scrap and billet spread is around at INR 6,000-6500/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $370-378/t (including freight, which comes to approximately INR 33,100/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 33,000/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 12,600/t.

To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here

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