SteelMint’s domestic steel scrap (end-cutting) index rose by INR 1,000/t to INR 40,300/t DAP Mandi Gobindgarh on 29 November, 2022.
Scrap supply has still not improved in the domestic market. This, coupled with a rise in semis prices, lifted the index.
Scrap buyers raised their bids to secure adequate quantities backed by a marginal rise in semi-finished steel prices. Ingots prices in the Mandi market today rose by INR 800/t to INR 45,500/t DAP, at the time of reporting and price normalisation.
In Mandi, the semi-finished and finished steel markets remained limited with only need-based purchases taking place, while tight supply of scrap and lack of offers by traders led to a rise in scrap prices.
“Scrap movement in the market was slow, and furnace owners were not getting scrap as per their requirements. So they increased the semis prices to get the scrap,” a scrap trader informed SteelMint.
HR strip patra (148-200mm, 2mm thick) prices increased by INR 400/t to INR 46,900/t exw-Mandi Gobindgarh, while prices edged up by INR 100/t to INR 45,200/t in Raipur today, excluding GST at 18%.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang market increased by INR 500/t d-o-d, as per SteelMint’s assessment. HMS (80:20) prices were assessed at INR 37,500/t ex-yard. Prices of semi-finished steel rose during yesterday’s trading session in the northern region. Moderate buying interest for scrap from the induction furnace-based mills in Bhavnagar, Gujarat, prompted suppliers to hike their offers.
Hyderabad: In the southern market of Hyderabad, billet prices increased by around 1,000/t, while rebar and scrap prices improved by INR 500/t on the back of moderate demand for semis and finished steel.
Market highlights
End-cutting and billet spread: In Mandi, the end-cutting scrap and billet spread was at INR 6,000-6,500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at $370-378/t (including freight, which comes to approximately INR 33,100/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 34,000/t.
Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 13,100/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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