SteelMint’s domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 38,800/t DAP Mandi Gobindgarh on 23 November, 2022. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.
A trader source said: “Before the rollback of export duties, whatever the situation was with the domestic market, prices are correcting at that level.”
Today, steel ingots prices in Mandi saw a downward correction of INR 800/t d-o-d, falling to INR 44,200/t at the time of reporting and price normalisation.
Snapshots of other markets–
Alang – Ship-breaking melting scrap prices fell sharply by INR 1,300/t to INR 37,700/t exy d-o-d in Gujarat’s Alang market on 23 Nov’22. Lower bids and limited trade volumes for scrap along with a sharp drop in semi-finished steel prices in yesterday’s session forced scrap suppliers to reduce their opening offers.
Chennai- As a result of low steel demand in Chennai, both semis and finished steel prices fell by INR 500/t, while scrap prices are still stable as it is already in its lower level.
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 $375-380/t (including freight, which comes to approximately INR 33,300/t, including freight charges around INR 2,200/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 12,400/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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