SteelMint’s domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 44,000/t DAP Mandi Gobindgarh on 11 March, 2023. Low demand for semi-finished and finished steel products put downward pressure on scrap prices.
Today, steel ingots prices in Mandi edged down by INR 100/t d-o-d to INR 49,400/t at the time of reporting and price normalisation. Prices in almost all the key markets fell by up to INR 500/t today.
Trading in semi-finished and finished steel remained limited, as liquidity issues persisted in the market putting a brake on buying.
“There is lack of demand for finished steel and buyers remained silent, putting pressure on the market and resulting in price correction,” a source informed.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap (HMS 80:20) prices in Alang, Gujarat, remained stable d-o-d at INR 39,500/t exy today. Though steel trade remained dull in the northern and western Indian markets, moderate demand for scrap supported offers.A major Gujarat-based steel producer was learned to have booked 1,300 t of attachment scrap yesterday at INR 40,400/t exy against the opening price of INR 41,000/t.
Chennai: Prices of semi-finished, steel stable at INR 49,500/t, while demand and trades of finished material is limited. Rebar prices in Chennai stands for INR 54,000/t DAP.
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 39,900/t), while local scrap – HMS (80:20) – prices in Mumbai stands 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 14,300/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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