SteelMint’s domestic steel scrap (end-cutting) index decreased by INR 700/tonne (t) to INR 43,400/t DAP Mandi Gobindgarh on 9 January, 2023.
In morning trade today in Mandi Gobindgarh, in northern India, steel ingots prices opened on a negative note, decreasing by INR 500/t to INR 49,000/t but inched up later in the day to INR 49,100/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 500/t today.
The conversion spread (margins) of old scrap to induction furnace (IF)-route steel ingot improved by INR 300/t to INR 11,000/t d-o-d from INR 10,700/t yesterday. As per market sources, the conversion spread may increase by up to INR 11,500/t in the near future.
Trading in semi-finished and finished steel remained limited with only need-based purchases taking place. Also, liquidity issues persisted in the market, slowing down buying activity.
Meanwhile, imported scrap is smoothly arriving in the market and all mills are stocking up material. Resultantly, mill owners are creating some pressure on domestic scrap suppliers to decrease prices, a market source informed to SteelMint.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang declined by INR 300/t d-o-d, as per SteelMint’s assessment. HMS (80:20) prices are assessed at INR 38,700/t exy. The market is witnessing slow price movement in semi-finished steel and scrap along with limited trades. These factors prompted scrap suppliers in the region to reduce their offers.
Chennai: In southern India-based Chennai market, HMS 80:20 prices increased by INR 300/t to INR 35,500/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 5,000-5,500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $435-438/t (including freight, which equates to approximately INR 38,400/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,300/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 14,900/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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