SteelMint’s domestic scrap index remained stable as the market fluctuated in the range of INR 200/tonne today. Meanwhile, end-user demand for steel continued to remain limited. End-cutting scrap prices were recorded at INR 43,600/t DAP Mandi Gobindgarh on 21 January, 2023.
Prices of steel ingots in Mandi Gobindgarh opened on a negative note in today’s morning trade, but ended at their previous levels of INR 49,300/t at the time of reporting and price normalisation.
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.
However, except in the Chennai market, scrap prices in all other regions either remained stable or showed some downtrend.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices fell by INR 500/t d-o-d in Gujarat’s Alang market on 21 January, SteelMint’s assessment shows. HMS (80:20) prices opened at INR 38,200/t exy. The market saw volatile price movements in semi-finished steel in yesterday’s session. This along with limited trade for scrap prompted suppliers to reduce their offers today.
Chennai: Today, semis’ prices in southern India-based Chennai market moved down by INR 300/t to INR 50,500/t, while rebar prices remained stable at INR 54,300/t. On the other hand, HMS 80:20 prices edged up by INR 300/t to INR 36,900/t DAP.
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 37,000/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 15,450/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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