SteelMint’s domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 42,000/t DAP Mandi Gobindgarh on 10 February, 2023. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.
Today, steel ingots prices in Mandi fall by INR 400/t d-o-d to INR 47,500/t at the time of reporting and price normalisation. Prices in almost all the key markets fell by up to INR 500/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.
“There is low demand for finished steel, and buyers are remaining mute, which puts selling pressure on the market and causes a price correction,” a source informed.
Snapshots of other markets
Alang: Ship-breaking melting scrap HMS (80:20) prices in Gujarat’s Alang market remained stable d-o-d at INR 38,000/t exy today. Steady semi-finished steel prices in the last trading session and moderate buying inquiries for scrap prompted suppliers to keep offers stable. Last week, Hazira-based mill booked around 5,000 t of scrap from Alang at a discount of INR 500/t from booking price, sources informed.
Chennai: Prices of semi-finished, steel falls by INR 500/t, while demand and trades of finished material is limited. Billet prices in Chennai stands for INR 49,500/t DAP.
Jalna: There has been no improvement in sales, and end-users are still hoping for some more price corrections in the near future. The tight supply of melting scrap prevented buyers from reducing their prices. TMT prices of Jalna Maharashtra stand at 55,000/t ex-works, a decrease of INR 500/tonne d-o-d.
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 $438-$448 t (including freight, which equates to approximately INR 39190/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 35,800/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 13,750/t.
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