SteelMint’s domestic scrap index remained stable as the market showed a marginal rise of INR 200/tonne (t) today, while end-user demand for steel continued to remain limited. End-cutting scrap fell by INR 100/t to INR 42,500/t DAP Mandi Gobindgarh on 14 December, 2022.
Today, steel ingots prices in Mandi fell by INR 200/t d-o-d to INR 47,500/t at the time of reporting and price normalisation.
According to a trader, scrap availability in Mandi Gobindgarh is very poor, and mills are unable to get enough of the material. A shortage of vehicles is also preventing transportation of the material from outside the state into Mandi Gobindgarh.
Moreover, very poor offtake is resulting in most furnaces operating 12 hours a day. There are also liquidity issues in the market, which are hindering spot trades.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, declined by INR 300/t d-o-d on 14 December. As per SteelMint’s assessment, HMS (80:20) prices are assessed at INR 38,700/t exy. Demand and buying enquiries remained limited due to price correction in semis and dull finished steel trading in yesterday’s session. This prompted scrap suppliers to reduce offers in the spot market, sources informed.
Chennai: Today, semis’ prices in southern India’s Chennai market moved down by INR 300/t to INR 46,500/t, while HMS 80:20 scrap prices remained stable at INR 33,500/t DAP on account of moderate demand. On the other hand, rebar prices decreased by INR 300/t to INR 51,700/t.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 6,000-6,500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $418-422/t (including freight, it comes to approximately INR 36,900/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 36,500/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 13,200/t.
To see SteelMint’s Melting Scrap Assessment, pricing methodology and specification documents, Click here
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