SteelMint’s domestic scrap (end-cutting) index remained unchanged d-o-d at INR 41,800/tonne (t) DAP Mandi Gobindgarh on 13 February, 2023 The index remained stable with the market showing a slowdown in trade activities even as shortage of scrap persists in the market.
Today, steel ingots prices in Mandi remained stable by INR 47,300/t d-o-d at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 200-300/t today.
Only purchases based on immediate requirements continued to be made for semi-finished and finished steel. Additionally, market liquidity problems persisted, slowing down buying activities.
“The market may remain stable or move forward to INR 47,000/t plus as scrap shortage persists in Mandi,” a source said.
“Bulk booking is absent in the Mandi ingot market. Some small traders are dealing in cash or 1-2 days’ credit policy,” a source informed.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable for the fifth successive day. HMS (80:20) prices opened at INR 38,000/t exy today. Although semis and finished steel trade remained dull in the key markets of northern and western India in the last trading session, active buying inquiries for scrap supported prices.
Jalna: There are very few inquiries for finished steel (rebar) in the Jalna market. The mills have enough stock in their yards and in order to liquidate the material suppliers are offering attractive trade discounts. Even so, buyers are not willing to buy in bulk. There is possibility of further price correction in the near term. Jalna-Maharashtra rebar prices stands at INR 55,000/t ex-works
Chennai: The market remained sluggish on low demand for finished steel. rebar prices of Chennai-Tamil Nadu stands at INR 53,800/t ex-works
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 $436-$445 t (including freight, which equates to approximately INR 38,990/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,000/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 14,000/t.
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