SteelMint’s domestic steel scrap (end-cutting) index rose by INR 200/tonne (t) to INR 43,500/t DAP Mandi Gobindgarh on 27 January, 2023.
The index rose on the back of an improvement in semi-finished steel demand and prices in today’s session. But finished steel demand remained limited.
Steel ingots prices in Mandi Gobindgarh inched up by INR 250/t d-o-d to INR 49,450/t at the time of reporting and price normalisation. In the first half of today’s trading session the market opened on a positive note, but in the second half no major movement was seen in prices of semis.
Snapshots of other markets
Jalna: By the second half of today, steel mills in Jalna had received good orders for finished steel, although there were no indications of price improvement. Imported scrap arrival is also thought to be a factor contributing to the stability in scrap prices.
Chennai: Today, semis prices in the Chennai market remained stable at INR 50,300/t, while rebar prices decreased by INR 200/t to INR 54,300/t exw. On the other hand, HMS 80:20 prices were assessed at INR 37,000/t DAP.
Alang-Ship-breaking melting scrap prices in Gujarat’s Alang market saw an uptick of INR 200/t today. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 38,500/t ex-yard. Despite limited trade in semis and finished steel in the western region, moderate buying enquiries for scrap in the last trading session supported the price hike.
Durgapur-The West Bengal market for finished and semi-finished steel improved, especially in Durgapur. But the cost of scrap edged down. Melting scrap (HMS 90:10/94%(+/-1%)) was reported at INR 41,000-41,500/t FOR whereas Steelimint’s melting scrap (HMS:80:20/ 92%(+/-1%)) assessment stood at INR 40,200-40,700/t. Additionally, the Saturday to Tuesday bank strike is weighing on trades.
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 $430/t (including freight, which equates to approximately INR 37,300/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 15,300/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – info@steelmint.com.
Leave a Reply