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 43,500/t DAP Mandi Gobindgarh on 23 January, 2023.
Prices of steel ingots in Mandi Gobindgarh opened on a positive note in morning trade today, increasing by INR 400/t to INR 49,700/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 increased by up to INR 600/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.
“Due to arrival of imported scrap in the Mandi market last week, mills are trying to decrease domestic scrap purchase prices”, market sources informed.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices remained stable d-o-d today in Gujarat’s Alang market. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 38,200/t exy. Moderate trade in the semi-finished and finished steel segments in the last trading session and limited buying enquiries for scrap prompted suppliers to keep offers stable.
Chennai: Today, semis prices in south India’s Chennai market remained stable at INR 50,500/t, while rebar prices increased by INR 200/t to INR 54,500/t. On the other hand, HMS 80:20 prices edged up by INR 100/t to INR 37,000/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 $435-440/t (including freight, which equates to approximately INR 38,000/t), while 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 15,450/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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