Rising steel prices in Indian domestic market have cheered secondary steel manufacturers, which contributes almost 33% of India’s crude steel production share.
Secondary steel producers, which accounts for over 1,400 induction furnaces and over 350 Sponge iron units in India and had been facing problems owing to weaker margins and other regulatory issues, have something to cheer now.
Recent spike in steel prices have given some relief to secondary steel producers. Some of them believe that this is sustainable hike and some believe this is pre-election enthusiasm.
Mandi Gobindgarh: Conversion from Scrap to Ingot increased to INR 9,100/MT; Scrap driven market.
Raipur: Conversion from Sponge to Ingot rose to INR 9,300/MT, which remained at INR 8,500/MT in last quarter; Sponge driven market.
Raigarh: Ingot manufacturers are minting decent profits as conversion escalated to INR 10,100/MT.
Mumbai: Conversion from Scrap to Ingot boosted to INR 7,500/MT against an average of INR 6,500/MT.
Hyderabad: Conversion from Sponge to Ingot shot up to INR 11,900/MT than the average of INR 10,500/MT.
Chennai: Conversion from Scrap to Ingot rose to INR 7,500/MT against an average of INR 7,000/MT.
Conversion Table of MS Ingot from Sponge Iron/Scrap with Power Charges
|
City |
MS Ingot |
Sponge Iron |
HMS Scrap |
Power Cost/unit |
Conversion/Spread |
|
Raipur |
31,200 |
21,900 |
– |
4.5 |
9,300 |
|
Raigarh |
31,000 |
20,900 |
– |
4.2 |
10,100 |
|
Mandi |
35,200 |
– |
26,100 |
7.5 |
9,100 |
|
Durgapur |
30,800 |
20,400 |
– |
4.6 |
10,400 |
|
Hyderabad |
33,400 |
21,500 |
– |
6.2 |
11,900 |
|
Mumbai |
33,600 |
– |
26,100 |
6.5 |
7,500 |
|
Chennai |
33,550 |
– |
26,000 |
5.5 |
7,550 |
Basic prices in INR/MT
MS Ingot prices: Next day payment
Sponge iron prices: Advance payment
Scrap prices: Advance payment/next day payment
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