SteelMint’s domestic scrap index remained stable as the market fluctuated in the range of INR 300/t today. Meanwhile, end-user demand for steel continued to remain limited. SteelMint’s domestic steel scrap (end-cutting) index was assessed at INR 44,100/t DAP Mandi Gobindgarh on 22 February, 2023.
Steel ingots prices in Mandi Gobindgarh opened on a negative note in morning trade today and reached up to INR 49,000/t. However, steel ingots prices edged up later in the day to reach INR 49,300/t at the time of reporting and price normalisation. Prices in almost all the key markets remained either stable or decreased by up to INR 400/t.
Trading in semi-finished and finished steel remained limited with only need-based purchases taking place. Also, liquidity issues persisted in the market, slowing down buying activity.
“Demand of finished material is very limited and payment crisis is still affecting the market. On the other hand, there is a huge shortage of scrap in the market,” sources informed SteelMint.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable for the fifth successive day, as per SteelMint’s assessment. HMS (80:20) prices are assessed at INR 39,700/t exy. Steady semi-finished steel prices in Gujarat during the last trading session, and moderate buying inquiries for scrap in the region prompted suppliers to keep offers stable today.
Chennai: Demand for finished steel is limited in the market. Chennai prices of HMS (80:20) stand at 36,850/t DAP.
Jalna: Today, semis prices in the western India-based Jalna market fell by INR 100/t to INR 48,700/t. Rebars prices remained stable at INR 56,000/t. HMS 80:20 prices also remained stable and were assessed at INR 37,900/t.
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 $434-$446 t (including freight, which equates to approximately INR 39,100/t). Meanwhile, local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,000/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 14,450/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – info@steelmint.com.
Leave a Reply