SteelMint’s domestic steel scrap (end-cutting) index fell by INR 1,100/tonne (t) to INR 36,800/t DAP Mandi Gobindgarh on 18 November, 2022. The index dropped to INR 4,500/t w-o-w.
Sellers, buyers, and traders remained muted today, watching the market instead of taking positions. Sources informed SteelMint that those who had sold material on credit were worried about receiving their payments.
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.”
Today, steel ingots prices in Mandi saw a sharp correction of INR 1,000/t d-o-d, falling to INR 42,300/t at the time of reporting and price normalisation.
“There is low demand for finished steel and inventories are continuously increasing, which is creating selling pressure and resulting in the sharp fall in prices,” sources informed.
Snapshots of other markets-
In terms of finished steel sales, Jalna’s performance is below par. If a mill produces 1,000 t of rebar 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 1,500/t for HMS(80:20).
Jalna mills also reduced production by 20% due to lower demand for finished steel.
In the Raipur market, semis prices decreased by around INR 600/t to INR 40,000/t, while scrap prices are down INR 1,000/t. Poor demand for semis and finished steel and liquidity issues are key 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 $378-380/t (including freight, which is approximately INR 34,000/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 33,300/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 12,600/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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