SteelMint’s domestic scrap (end-cutting) index remained unchanged d-o-d at INR 43,400/tonne (t) DAP Mandi Gobindgarh on 27 February, 2023. The index remained stable with the market showing a slowdown in trade even as shortage of scrap persists.
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.
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.
“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 fell further by INR 200/t d-o-d in Gujarat’s Alang market, SteelMint’s assessment shows. HMS (80:20) prices are assessed at INR 38,800/t ex-yard. Lack of trades in semi-finished and finished steel material in the region in the last trading session coupled with limited buying inquiries forced scrap suppliers to reduce their offers today.
Jalna: There are very few inquiries for finished steel (rebar) in the Jalna market. Mills have enough stock in their yards and in order to liquidate material suppliers are offering attractive trade discounts, although buyers are not willing to buy bulk volumes. Rebar prices in Jalna stand at INR 55,300/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 $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 pellets-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,350/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – info@steelmint.com.
Leave a Reply