SteelMint’s domestic scrap (end-cutting) index edged up by INR 200/t d-o-d at INR 43,600/tonne (t) DAP Mandi Gobindgarh on 28 February, 2023. The index inched up on moderate trading activities and improvement in prices of semis.
Steel ingots prices in Mandi Gobindgarh increased by INR 300/t d-o-d to INR 49,000/t at the time of reporting and price normalisation. In the first half of today’s trading session, the market opened on a negative note at INR 48,700/t, but in the second half some improvement was seen.
The conversion spread (margin) of old scrap to induction furnace (IF)-route steel ingot improved by INR 200/t to INR 10,700/t d-o-d from INR 10,500/t yesterday. As per market sources, the conversion spread may increase by up to INR 11,000/t in the coming days.
Scrap prices got some support with the rise in semi-finished steel prices but liquidity issues still persisted in the market.
As per sources, “Scrap supply is still limited in Mandi and improvement in semis demand is supporting the price hike.”
Snapshots of other markets
Alang: In Gujarat’s Alang, ship-breaking melting scrap prices remained stable d-o-d on 28 Feb’23, as per SteelMint’s assessment. HMS (80:20) prices are assessed at INR 38,800/t exy. Steady semi-finished steel prices in Gujarat during the last trading session and moderate buying inquiries for scrap in the region prompted suppliers to keep offers stable today.
Chennai: Prices of semis, finished steel and scrap remained stable. Demand and trade in finished material remained limited, though. Rebar prices in Chennai were assessed at 54,000/t ex-works. However, increasing frequency of GST raids is also affecting trade activities.
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 $440-$455 t (including freight, which equates to approximately INR 39,700/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,300/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 14,350/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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