SteelMint’s domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 39,200/t DAP Mandi Gobindgarh on 22 November, 2022. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.
A trader source said: “There are liquidity issues in the market, which are hindering spot trades. The domestic scrap market may decline further in the coming days.”
Market sources informed that offer prices for finished steel on major markets opened a little higher, but finally they are dealing with discounting prices of around INR 1,000-1,500/t.
Today, steel ingots prices in Mandi saw a sharp correction of INR 700/t d-o-d, falling to INR 44,800/t at the time of reporting and price normalisation.
Snapshots of other markets-
Alang – Ship-breaking melting scrap prices declined further by INR 500/t d-o-d in Gujarat’s Alang market, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 39,000/t ex-yard. The market is witnessing slow price movement in semi-finished steel and scrap along with limited trades.
Jalna – Yesterday evening, the scrap purchase prices increased by around INR 1,000-1500/t, but in today’s second half of trading, prices fell by a similar quantum.
Hyderabad- Today’s scrap HMS(80:20) purchase prices remained unchanged at INR 34,000/t, but semis prices sharply corrected by INR 500/t.
Chennai- As a result of low steel demand in Chennai, both scrap and finished steel prices fell by INR 500/t.
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 $378-380/t (including freight, which comes to approximately INR 34,150/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 34,500/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 13,000/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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