SteelMint’s domestic steel scrap (end-cutting) index rose by INR 300/tonne (t) to INR 43,500/t DAP Mandi Gobindgarh on 11 January, 2022.
The index rose as semi-finished and finished steel demand and prices improved in today’s trading session.
Steel ingots prices in Mandi Gobindgarh increased by INR 500/t d-o-d to INR 49,500/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 900/t today.
In the last week, Mandi-based steel manufacturers increased production from 12 hours a day to 24 hours in the expactation of a better demand in finished and semi-finished steel and an increase in scrap availability. However, currently in mills, the stock of semi-finished material is piling up.
According to local traders, all major mills in Mandi have 10-15 days stock of imported scrap in their stock yards. Since they have already paid for this stock they are using it instead of buying from local vendors.
Snapshots of other markets
Alang: In Gujarat’s Alang market, ship-breaking melting scrap prices remained stable d-o-d today. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 38,400/t exy. Moderate trades in semi-finished and finished steel in yesterday’s session and active buying enquiries for scrap prompted suppliers to keep their offers stable.
Jalna: Today, semis’ prices in western India’s Jalna market increased by INR 200/t to INR 49,700/t, while rebars prices also increased by INR 700/t to INR 56,200/t. On the other hand, HMS 80:20 scrap prices improved by INR 200/t to INR 37,000/t DAP. Jalna manufacturers experienced good demand for finished material during the second half of today’s session, so they have increased their scrap purchasing prices. However, the mills in Jalna also have imported scrap in their stockyards. Local traders are struggling to unload their scrap vehicles on the same day, a trader mentioned.
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 $435-440/t (including freight, which equates to approximately INR 38,100/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,500/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 14,800/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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