SteelMint’s domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 41,200/t DAP Mandi Gobindgarh on 2 December, 2022. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.
Today, steel ingots prices in Mandi fell INR 400/t d-o-d to INR 46,600/t at the time of reporting and price normalisation.
A trader source said: “There are liquidity issues in the market, which are hindering spot trades, while domestic scrap supply is still limited.”
Except in the Gujarat region, in all the other markets semis prices either decreased or remained stable today.
HR strip patra (148-200mm, 2mm thick) prices decreased by INR 200/t to INR 48,100/t exw-Mandi Gobindgarh, while prices remained unchanged to INR 46,200/t in Raipur d-o-d today, excluding GST at 18%.
Snapshots of other markets–
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang market increased by INR 1,000/t on 2 Dec’22, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 39,500/t ex-yard. Moderate trades in semis and finished steel in western region as well as scrap suppliers witnessed active buying enquiries with limited availability of material which prompted them to raise their offers today.
Raipur: In central India’s Raipur market, billet and rebar prices decreased by around INR 300/t on account of limited demand, while scrap prices edge down by INR 400/t DAP.
Market highlights–
End-cutting and billet spread: In Mandi, the end-cutting scrap and billet spread was at INR 6,000-6,500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at $380/t (including freight, which comes to approximately INR 33,100/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 35,300/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
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