SteelMint’s domestic scrap index remained almost stable as the market fluctuated in the range of INR 300/t today. Meanwhile, end-user demand for steel continued to remain limited. SteelMint’s domestic steel scrap (end-cutting) index decreased by INR 200/tonne (t) to INR 42,700/t DAP Mandi Gobindgarh on 3 February, 2023.
Prices of steel ingots in Mandi Gobindgarh opened on a positive note in morning trade today at INR 48,700/t, but edged down later in the day to INR 48,400/t at the time of reporting and price normalisation. Prices in almost all the key markets either remained stable or decreased by up to INR 400/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, slowing down buying activity.
“Demand of finished material is very limited and payment crisis is still affecting the market. If semis prices decrease further below INR 48,000/t then some mills may temporarily stop operations for a certain period,” market sources informed SteelMint.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, continued to remain stable for the fifth successive day. HMS (80:20) prices opened at INR 39,100/t exy today. Semis and finished steel trade remained dull yesterday in key markets of northern and western India. Despite this, buying inquiries for scrap remained active at current prices. This prompted suppliers to keep offers stable.
Jalna: Today, semis prices in the western India based Jalna market decliened by INR 100/t to INR 49,900/t, while rebar prices decreased by INR 300/t to INR 56,500/t. On the other hand HMS 80:20 prices inch down by INR 100/t to INR 37,400/t.
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 $430-435/t (including freight, which equated to approximately INR 37,700/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,300/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 14,800/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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