SteelMint’s domestic steel scrap (end-cutting) index remained stable and recorded at INR 44,600/t DAP Mandi Gobindgarh on 5 January, 2023.
In the morning trade today in Mandi Gobindgarh, north India, steel ingots prices opened on a positive note, increasing by INR 300/t to INR 50,000/t but inched down later in the day to INR 49,900/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 500/t today.
The conversion spread (margins) of old scrap to induction furnace (IF)-route steel ingots improved by 200/t to INR 10,700/t d-o-d from INR 10,500/t in the previous day. As per market sources, conversion spread may increase by up to INR 11,000/t in near future.
Meanwhile, trading in semi-finished and finished steel remained limited with only needs-based purchases taking place. Also, liquidity issues persisted in the market, slowing down buying activity.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang market decreased by INR 200/t d-o-d on 5 January, 2023. HMS (80:20) prices are assessed at INR 39,100/t ex-yard. A drop in semi-finished steel prices in yesterday’s trading session and moderate buying interest for scrap from the induction furnace-based mills in Bhavnagar pushed suppliers to lower offers.
Chennai: In southern India-based Chennai market, HMS 80:20 prices increased by INR 200/t to INR 35,000/t, while billets and rebars prices remained stable today.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 5,000-5,200/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $430-435/t (including freight, which equates to approximately INR 38,000/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 38,500/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 15,050/t.
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