SteelMint’s domestic steel scrap (end-cutting) index remained stable at INR 42,500/t DAP Mandi Gobindgarh on 29 March, 2023. Today in Mandi, the market for semis and finished steel was weak. Moreover, liquidity crunch persisted.
Steel ingots prices in Mandi fell by INR 200/t d-o-d to INR 48,200/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 100/t today.
As of March, major mills in Mandi were focusing on clearing their inventory due to limited trading activity and mounting selling pressure, according to sources.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap prices in Gujarat’s Alang moved up by INR 300/t d-o-d on 29 March. HMS (80:20) prices stand at INR 40,100/t ex-yard. Moderate demand from the induction furnace steel mills in Bhavnagar and an uptick in finished steel prices in yesterday’s trading session supported scrap offers.
Jalna: In comparison to yesterday’s trading session, the semi-finished and finished steel markets saw moderate trading activity today. Billet prices in Jalna stood at INR 48,000/t exw. Rebar prices were assessed at INR 55,200/t exw, while scrap prices decreased by INR 500/t d-o-d. HMS(80:20) scrap prices are assessed at INR 38,500/t DAP.
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 $428-$430/t,which equates to approximately INR 37,594/t(including freight),while local scrap-HMS (80:20)-prices in Mumbai stood at INR 38,000/t up 200/t d-o-d.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 15,850/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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