SteelMint’s domestic scrap index remained almost stable as the market fluctuated in the range of INR 200/t today. Meanwhile, end-user demand for steel continued to remain limited. SteelMint’s domestic steel scrap (end-cutting) index increased by INR 200/tonne (t) to INR 42,900/t DAP Mandi Gobindgarh on 6 February, 2023.
Prices of steel ingots in Mandi Gobindgarh opened on a positive note in morning trade today at INR 48,800/t, but edged down later in the day to INR 48,600/t at the time of reporting and price normalization. Prices in almost all the key markets either remained stable or decreased by up to INR 200/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.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices remained stable d-o-d today in Gujarat’s Alang market. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 38,600/t exy. Healthy demand for scrap at prevailing offers along with limited buying inquiries for semis and finished steel in the last trading session prompted suppliers to keep offers stable.
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 $440-455/t (including freight, which equates to approximately INR 39,400/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,200/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 14,650/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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