SteelMint’s domestic steel scrap (end-cutting) index fell by INR 1,200/tonne (t) to INR 38,500/t DAP Mandi Gobindgarh on 16 November, 2022. The price of domestic melting scrap, however, fell to its lowest level since April this year.
Mandi ingots opened this morning at INR 45,000/t, but later slipped to INR 44,000/t at the time of SteelMint’s price normalisation.
“Inventories of semis are increasing at mills as poor sales have resulted in most furnaces operating 12 hours a day,” a Mandi mill source said.
“There is a real effort by scrap sellers to stabilise the market. The price is going down but in a limited way. Prices may go down further by INR 500-700/t,” another trader source pointed out.
Snapshots of other markets-
In terms of finished steel sales, Jalna’s performance is below par. If a mill produces 1,000 t of rebars daily, it sells about 300-400 t in the market and the rest gets stored as inventory. In the near term, retailers expect the downward trend to continue. Mills reduced scrap prices today. Jalna-based mills reduced prices by around INR 1,000/t for HMS(80:20).
In the Raipur market, semis prices decreased by around INR 1,100/t to INR 41,200/t, while scrap prices are down by INR 1,000/t. Poor demand for semis and finished steel and liquidity issues are the major factors weighing on the market.
Market highlights–
End-cutting and billet spread: In Mandi, the end-cutting scrap and billet spread remained unchanged today at INR 6,000/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were around $380-383/t (including freight, which comes to approximately INR 34,100/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 34,000/t.
Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 12,700/t.
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