SteelMint’s domestic steel scrap (end-cutting) index decreased by INR 200/tonne (t) to INR 43,300/t DAP Mandi Gobindgarh on 10 January, 2023.
Prices of steel ingots in Mandi Gobindgarh opened on a negative note in morning trade today decreasing by INR 350/t to INR 48,750/t, but edged up later in the day to INR 48,900/t at the time of reporting and price normalisation. Prices in almost all the key markets either stable or decreased by up to INR 700/t today.
Demand for semi-finished and finished steel remained limited today, with only need-based purchases taking place. Also, liquidity issues persisted in the market, slowing down buying activity.
“There is low demand for finished steel and inventories are continuously increasing, which is creating selling pressure and resulting in correction in prices,” a source informed.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang market declined further by INR 300/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 38,400/t exy. Lack of demand and buying enquiries due to the downward correction in semis prices and limited trading in finished steel weighed on prices. As a result, scrap suppliers reduced their offers slightly, sources informed.
Jalna: Today, prices of semis prices in western India’s Jalna market fell by INR 300/t to INR 49,500/t, while rebar prices decreased byINR 400/t to INR 55,500/t. On the other hand, HMS 80:20 scrap prices remained stable at INR 36,800/t on account of moderate demand.
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 $435-440/t (including freight, which equates to approximately INR 38,100/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,500/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 14,950/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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