SteelMint’s domestic steel scrap (end-cutting) index fell by INR 100/tonne (t) to INR 42,400/t DAP Mandi Gobindgarh on 8 February, 2023. Low demand for semi-finished and finished steel put downward pressure on scrap prices.
Today, steel ingots prices in Mandi fell by INR 350/t d-o-d to INR 47,800/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 500/t today.
Market players in Mandi are still facing liquidity problems and low demand for semi-finished steel. The market is continuing to decline daily as a result of limited buying power.
“These days, Mandi’s small vendors only accept cash and have access to one day’s worth of credit. whereas major suppliers have a credit limit of three to four days,” a source informed.
“Manufacturers of ingots say that bulk bookings are absent. Availibity of scrap is also declining day by day,” another source said.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang market decreased by INR 300/t d-o-d on 8 Feb’23. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 38,000/t exy. The fall in semi-finished steel prices in all the key markets in yesterday’s session and limited trading activities for scrap at current prices pushed suppliers to reduce offers.
Jalna: All the major mills in Jalna, Maharashtra, have reduced finished steel prices by around INR 500/t, but there has been no improvement in demand. Buyers of melting scrap have not reduced their purchase prices much because of tight supply. Today, rebar prices in Jalna were at INR 55,500/t ex-works.
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 $440-450/t (including freight, which equates to approximately INR 38,900/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,000/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 14,200/t.
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