SteelMint’s domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 43,500/t DAP Mandi Gobindgarh on 24 February, 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 in morning trade today at INR 49,000/t. However, prices edged down later in the day to INR 48,700/t at the time of reporting and price normalisation. Prices in almost all key markets decreased by up to INR 500/t today.
Trading in semi-finished and finished steel remained limited with only need-based purchases taking place. On top of this, liquidity issues persisted in the market, slowing down buying activity.
“There is low demand for finished steel and buyers are in a silent mode. This is creating selling pressure and resulting in price correction,” a source informed.
Snapshots of other markets
Alang: Shipbreaking melting scrap prices in Alang, Gujarat, dropped by INR 300/t d-o-d on 24 February, 2023, as per SteelMint’s assessment. HMS (80:20) prices are assessed at INR 39,200/t exy. Semi-finished steel prices fell in the yesterday’s trading session in all key markets. Limited trading activities at current price levels for scrap resulted in suppliers reducing their offers today.
Jalna: Today, semis prices in the western India-based Jalna market fell by INR 400/t to INR 48,000/t. On the other hand, rebars prices fell by INR 500/t to INR 55,300/t. HMS 80:20 prices edged down by INR 300/t to INR 37,600/t.
Chennai: Today, semis prices in south India’s Chennai market dropped by INR 500/t to INR 49,500/t. In contrast, rebars prices remained stable at INR 54,000/t. HMS 80:20 prices inched down by INR 100/t to INR 36,700/t DAP. Finished steel demand is very limited in the market, which is creating selling pressure in mills.
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 $434-$446 t (including freight, which equates to approximately INR 39,000/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 14,400/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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