SteelMint’s domestic steel scrap (end-cutting) index remained stable at INR 44,000/t DAP Mandi Gobindgarh on 18 February, 2023.
Since there is a shortage of scrap in the Mandi market, ingot manufacturers have reduced their conversion spread, which is now at INR 10,500/t. However, Mandi sources hinted that mills will increase the conversion spread by next week.
Steel ingots prices in Mandi Gobindgarh increased by INR 200/t d-o-d to INR 49,450/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 300-400/t today.
Throughout the day, the market remained inactive due to the Hindus festival of Shivratri. The actual trend will be clear by next week.
Alang: Ship-breaking melting scrap HMS (80:20) prices in Alang, Gujarat, opened stable d-o-d at INR 39,700/t exy today. Despite an increase in semi-finished and finished steel prices in the last trading session, steady buying interest for scrap prompted suppliers to keep offers stable.
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 $430-$440/t (including freight, which equates to approximately INR 38,640/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,700/t.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 15,000/t.
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