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 low. SteelMint’s domestic steel scrap (end-cutting) index decreased by INR 100/tonne (t) to INR 43,400/t DAP Mandi Gobindgarh on 25 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 48,700/t at the time of reporting and price normalisation.
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 steel is very limited and payment crisis is still affecting the market. There is huge shortage of scrap in the market,” sources informed SteelMint.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices inched down by INR 200/t d-o-d in Gujarat’s Alang market on 25 February, as per SteelMint’s assessment. HMS (80:20) prices stand at INR 39,000/t ex-yard. Semi-finished steel prices fell in yesterday’s trading session and subdued trading in the region pushed scrap suppliers to cut their offers today.
Jalna: Semis, rebar and scrap prices in the Jalna market remained stable as trade movement was very slow.
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 $435-$450 t (including freight, which equates to approximately INR 39,500/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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