SteelMint’s domestic scrap index falls INR 100/t as semi-finished steel prices drop

SteelMint’s domestic scrap index remained almost stable as the market fluctuated in the range of INR 200/t today. Meanwhile, end-user demand for steel continued to remain limited. SteelMint’s domestic steel scrap (end-cutting) index decreased by INR 100/tonne (t) to INR 44,100/t DAP Mandi Gobindgarh on 7 January, 2023.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note in today’s morning trade, increasing by INR 200/t to INR 49,800/t, but edged down later in the day to INR 49,500/t at the time of reporting and price normalisation. Prices in almost all the key markets either remained stable or decreased by up to INR 200/t today.

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.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Alang, Gujarat opened stable d-o-d today. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 39,000/t exy. Limited buying inquiries for semis in yesterday’s trading session and decent scrap trading volumes at current price levels prompted suppliers in the region to keep offers stable today.

Jalna: Today, prices of semis in western India’s Jalna market fell by INR 200/t to INR 50,300/t, while rebar prices decreased by INR 100/t to INR 56,200/t. On the other hand, HMS 80:20 prices edged up by INR 100/t to INR 38,000/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 $435-438/t (including freight, which equates to approximately INR 38,400/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,800/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 14,900/t.

To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here

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