SteelMint’s domestic steel scrap (end-cutting) index inched up by INR 100/tonne (t) to INR 42,300/t DAP Mandi Gobindgarh on 22 March, 2023. Mandi witnessed a lack of demand for semi-finished and finished steel today.
Steel ingots prices opened on a positive note and increased up to INR 48,300/t, but in the second half of the trading session prices fell to INR 47,950/t at the time of reporting. Prices in almost all key markets increased by INR 100-200/t today.
Semi-finished and finished steel markets remained weak today as liquidity issues persisted and mills are not receiving bulk orders.
Gujarat: Ship-breaking melting scrap (HMS 80:20) prices in Gujarat’s Alang market rose by INR 500/t d-o-d at INR 38,800/t exy on 22 March. Increasing semi-finished steel prices in north India and active buying of scrap by Bhavnagar-based induction furnace mills resulted in the price hike.
Raipur: Today, trading activity in the Raipur market was moderate. An INR 250/t hike was witnessed in semi-finished steel prices. Billet prices in Raipur are assessed at INR 45,950/t exw.
Jalna: The Jalna market today saw healthy demand for rebar, which may lead to an increase in rebar prices in the near-term. This is likely to reflect on scrap prices. Rebar prices in Jalna are assesed at INR 54,900/t exw.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $443-$456 t (including freight), which equates to approximately INR 39,878/t, while local scrap-HMS (80:20)-prices in Mumbai stood at INR 37,700/t DAP.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 15,050/t.
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