SteelMint’s domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 42,500/t DAP Mandi Gobindgarh on 28 March, 2023. Limited demand for semi-finished and finished steel drove down scrap prices.
Today, steel ingots prices in Mandi decreased by INR 100/tonne to INR 48,300/t at the time of reporting and price normalisation. Prices in almost all the key markets fell by INR 100-200/t today.
“There is lack of demand for finished steel, and buyers remained silent, exerting 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 prices opened higher by INR 300/t d-o-d today in Gujarat’s Alang market. HMS (80:20) prices currently stand at INR 39,800/t exy. Suppliers raised offers following a sharp hike in semi-finished steel prices by INR 1,100/t in Bhavnagar (INR 48,300/t DAP) in yesterday’s session. Meanwhile active buying inquiries for scrap also supported prices.
Chennai: Today, prices of semi-finished and finished steel were mostly stable. Billets prices stand at INR 49,000/t. Rebar prices stood at INR 54,500/t. HMS 80:20 prices were assessed at INR 36,500/t DAP. GST raids are being carried out 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 $428-$435 t (including freight, which amounts to approximately INR 37,941/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,800/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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