SteelMint’s domestic scrap (end-cutting) index edged up by INR 300/t d-o-d to INR 42,700/tonne (t) DAP Mandi Gobindgarh on 27 March, 2023. The index rose slightly despite slowdown in trade activities even as liquidity issues persisted in the market.
Steel ingot prices in Mandi Gobindgarh inched up by INR 250/t d-o-d to INR 48,400/t at the time of reporting and price normalisation. The market has seen low trading activity as the movement of semis and finished steel remains poor.
The impact of the March financial year closing is apparent in major markets. However, because of liquidity issues, the market is not running smoothly,” a source said.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap prices in Gujarat’s Alang market edged up by INR 300/t on 27 March. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 39,500/t ex-yard. The rise in semi-finished steel prices in northern India and active scrap buying by the induction furnace mills in the region prompted suppliers to raise their offers today. Semis’ prices in Ahemdabad increased. Billets here were assessed at INR 48,500/t DAP. More than 2,000/t of billets were booked in todays trading session.
Jalna: The market saw low trading activity today, but the semi-finished segment saw some demand and hence prices rose by a nominal INR 100/t to INR 47,900/t DAP. The finished segment saw moderate demand. Rebars stood at INR 54,900/t exw, stable d-o-d.
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 $438-$445 t (including freight, which equates to approximately INR 38,830/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,500/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 15,600/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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