SteelMint’s domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 42,600/t DAP Mandi Gobindgarh on 13 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 200/t d-o-d to INR 47,600/t at the time of reporting and price normalisation.
A market source said: “There are liquidity issues in the market due to poor demand in semis and finished material, which are hindering spot trades, while domestic scrap supply is still limited.”
Snapshots of other markets–
Alang: Ship-breaking melting scrap prices fell further by INR 200/t d-o-d in Gujarat’s Alang market, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 39,000/t ex-yard. Lack of trades in semi-finished and finished steel material in the region in yesterday’s trading session and limited buying inquiries for scrap forced suppliers to reduce their offers today.
Hyderabad: Today, semis’ prices in southern India’s Hyderabad market moved down by INR 500/t to INR 46,500/t, while rebar prices remained stable at INR 51,500/t on account of moderate demand. On the other hand, HMS 80:20 scrap prices decreased by INR 200/t to INR 35,500/t DAP.
Price highlights–
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 6,000-6500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $418-422/t (including freight, which comes to approximately INR 36,900/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,500/t.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 13,300/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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