SteelMint’s domestic scrap (end-cutting) index inched down by INR 150/t d-o-d to INR 42,400/tonne (t) DAP Mandi Gobindgarh on 25 March, 2023. The index fell amid slowdown in trade activities as liquidity issues persisted in the market.
Today, steel ingot prices in Mandi were stable at INR 48,150/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 100-200/t today.
Semi-finished and finished steel markets remained weak today as liquidity issues persisted and mills have not been receiving bulk orders.
“As of March, Mandi’s major mills were focusing on clearing inventory,” a source informed.
Snapshots of other markets
Gujarat: Shipbreaking melting scrap prices in Gujarat’s Alang market rose by INR 200/t d-o-d on 25 March, as per SteelMint’s assessment, HMS (80:20) prices stand at INR 39,200/t ex-yard. An uptick in semi-finished steel prices in yesterday’s trading session in the region and active demand for scrap from the induction furnace steel mills in Bhavnagar, Gujarat, supported scrap offers.
Chennai: The Chennai market was quiet today, owing to lacklustre demand for finished steel and the ongoing GST crackdown. Rebar prices in Chennai stood at INR 54,500/t ex-works.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $438-$445 t (including freight), which equates to approximately INR 38,844/t, while local scrap-HMS (80:20)-prices in Mumbai stood at INR 37,500/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 INR 15,200/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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