SteelMint’s domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 43,700/t DAP Mandi Gobindgarh on 14 March, 2023. Limited demand for semi-finished and finished steel drove down scrap prices.
Today, steel ingots prices in Mandi remained stable at INR 49,400/t at the time of reporting and price normalisation. Prices in almost all the key markets fell by to INR 100/t today.
Due to easy access to scrap and low demand for semi-finished and finished steel, the conversion gap between scrap to ingots increased by INR 200/t to 11,000/t.
“There is lack of demand for finished steel, and buyers remained silent, putting selling pressure on the market and causing a price correction,” a source in the know said while speaking to SteelMint.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap HMS (80:20) grade prices remained stable d-o-d at INR 39,700/t exy on 14 March, 2023 in Gujarat’s Alang market. Steady semi-finished steel prices in the last trading session and moderate buying inquiries for scrap prompted suppliers to keep offers stable.
Chennai: Today, prices of semi-finished and finished steel were up by INR 200/t. Billets prices stand at INR 50,000/t. Rebars prices stood at INR 54,000/t. HMS 80:20 scrap prices were assessed at INR 36,500/t DAP. GST raids are active in the Chennai region.
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 $445-$465 t (including freight), which equates to approximately INR 40,482/t, while local scrap – HMS (80:20) – prices in Mumbai stood at INR 39,000/t DAP.
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 14,500/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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