SteelMint’s domestic steel scrap (end-cutting) index fell INR 400/tonne (t) to INR 44,200/t DAP Mandi Gobindgarh on 21 September, 2022.
The price discrepancy in the domestic market is due to the lack of demand for finished products and semis, as prices keep decreasing.
Steel ingots in Mandi opened on a positive note today and touched 50,000/t, but after that, these fell sharply and closed in the range of INR 49,500-600/t.
Today, Mandi furnace owners increased scrap to ingot conversion spread by INR 500/t to 11,000/t from 10,500/t, which has also affected scrap prices directly.
Amid uncertain price movements, buyers took a wait-and-watch approach, which led to subdued trading in the spot market throughout the day, SteelMint learnt from sources.
Other sources informed that ferrous scrap prices are likely to trend downward because of bulk and container steel scrap arriving at plants.
Market highlights
End-cutting and ingot spread: The end-cutting scrap and ingot spread in Mandi decreased by INR 200/t to INR 5,500/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 38,600/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 15,500/t.
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