SteelMint’s domestic steel scrap (end-cutting) index fell by INR 100/tonne (t) to INR 43,900/t DAP Mandi Gobindgarh on 13 March, 2023. Low demand for semi-finished and finished steel products put downward pressure on scrap prices.
Today, steel ingots prices in Mandi stable at INR 49,400/t at the time of reporting and price normalisation. Prices in almost all the key markets up by INR 100-200/t today.
Due to the ongoing liquidity problems in the market, trading in semi-finished and finished steel remained constrained.
Trading inquiries and orders for ingots were placed in the second part of the trading session. Prices inched up by INR 100/t, but the market fell silent yet again, sources informed SteelMint.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap prices in Alang, Gujarat, edged up by INR 200/t d-o-d on 13 March. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 39,700/t ex-yard. Moderate trading in semi finished steel in the western region, coupled with healthy buying of scrap by the Bhavnagar-based IF steel mills prompted scrap suppliers to hike offers.
Durgapur: Prices of semis increased by INR 550/t d-o-d. Billet stood at INR 46,800/t DAP. Due to power outage issues at around 20 major mills, rebar prices in Durgapur rose by INR 200/t d-o-d to INR 53,900/t.
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 $445-$460 t (including freight), which equates to approximately INR 40,046/t, while local scrap – HMS (80:20) – prices in Mumbai stood at INR 39,000/t DAP.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellets-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,550/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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