SteelMint’s domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 42,500/t DAP Mandi Gobindgarh on 7 February, 2023. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.
Prices of steel ingots in Mandi Gobindgarh opened on a positive note at INR 48,500/t in morning trade today, but edged down later in the day to INR 48,100/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 500/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 Gujarat’s Alang market decreased by INR 300/t d-o-d on 7 February. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 38,300/t exy. Limited purchase enquiries for scrap at higher prices along with moderate trade in the semis and finished steel segments prompted scrap suppliers to reduce their offers.
Chennai: Today, prices of semis in the south India’s Chennai market decreased by INR 300/t at INR 50,000/t, while rebar prices decreased by INR 200/t to INR 54,300/t. On the other hand, HMS 80:20 prices remained stable at INR 37,100/t. The demand for finished steel is limited in the market.
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 $440-455/t (including freight, which equates to approximately INR 39,800/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,200/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
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