SteelMint’s domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 43,300/t DAP Mandi Gobindgarh on 28 January, 2023. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.
Prices of steel ingots in Mandi Gobindgarh opened on a positive note at INR 49,400/t in morning trade today, but edge down later in the day to INR 49,300/t at the time of reporting and price normalisation. Prices in all the key markets were either stable or decreased by up to INR 300/t today.
Trading in semi-finished and finished steel remained limited with only need-based purchases taking place. Also, liquidity issues persisted in the market, putting a brake on buying.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang market rose by INR 300/t d-o-d on 28 January. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 38,800/t ex-yard. An uptick in semi-finished steel prices in yesterday’s trading session and moderate demand for scrap from the induction furnace steel mills in Bhavnagar supported scrap offers.
Chennai: Today, semis and finish steel prices in southern India-based Chennai market remained stable at INR 50,500/t and INR 54,300/t, while HMS 80:20 prices increased by INR 100/t to INR 37,100/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 $430/t (including freight, which equated 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 15,250/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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