SteelMint’s domestic steel scrap (end-cutting) index fell by INR 600/tonne (t) to INR 37,900/t DAP Mandi Gobindgarh on 17 November, 2022. The index dropped to the lowest level in one year on account of poor buying interest for semis and finished steel.
A trader source said: “There are liquidity issues in the market, which are hindering spot trades. The domestic scrap market may decline further in the coming days.”
Today, steel ingots prices in Mandi saw a sharp correction of INR 600/t d-o-d, falling to INR 43,200/t at the time of reporting and price normalisation. In the larger domestic market, semis prices ware droped by up to INR 1,000/t.
“There is low demand for finished steel and inventories are continuously increasing, which is creating selling pressure and resulting in the sharp fall in prices,” sources informed.
Snapshots of other markets-
In the western region semis prices decresed by up to INR 1,000/t. Shipbreaking melting scrap prices declined by INR 700/t d-o-d in Gujarat’s Alang market, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 35,800/t exy. Due to the forthcoming State Assembly elections in Gujarat, no new projects will commence, which is also likely to affect sales of finished steel.
In the Hyderabad market, semis prices decreased by around INR 900/t to INR 43,000/t, while scrap prices fell by INR 500/t. Poor demand for semis and finished steel and liquidity issues were the major factors weighing on the market.
Market highlights–
End-cutting and billet spread: In Mandi, the end-cutting scrap and billet spread remained unchanged today at INR 6,000/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were around $378-380/t (including freight, which comes to approximately INR 34,000/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 33,500/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 12,700/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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