SteelMint’s domestic steel scrap (end-cutting) index moved up by INR 400/t to INR 43,300/t DAP Mandi Gobindgarh on 24 December, 2022. The index rose as semi-finished steel demand and prices improved in today’s trading session.
Steel ingots prices in Mandi Gobindgarh edged up by INR 300/t d-o-d to INR 48,300/t at the time of reporting and price normalisation. Prices in almost all the key markets have either remained stable or increased by up to INR 700/t today.
Scrap prices got some support after the rise in semi-finished steel prices but liquidity issues persisted in the market.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang market increased by INR 500/t d-o-d on 24 December. HMS (80:20) prices are assessed at INR 38,100/t exy. Rising semi-finished steel prices in the Gujarat region and moderate buying interest for scrap by induction furnace mills at Bhavnagar, pushed suppliers to hike their offers, sources informed.
Jalna: In western India-based Jalna market, billets prices increased by INR 500/t to INR 47,500/t, while rebars and scrap prices remained stable today. HMS 80:20 prices are assessed at INR 37,400 DAP.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 5,000-5,200/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $415-418/t (including freight, it comes to approximately INR 36,800/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,500/t DAP.
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 13,700/t.
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