SteelMint’s domestic steel scrap (end-cutting) index rose by INR 200/tonne (t) to INR 43,300/t DAP Mandi Gobindgarh on 25 January, 2023.
The index rose on the back of an improvement in semi-finished steel demand and prices in today’s session. But finished steel demand remained limited.
Steel ingots prices in Mandi Gobindgarh inched up by INR 300/t d-o-d to INR 49,300/t at the time of reporting and price normalisation. In the first half of today’s trading session the market opened on a positive note, but in the second half no major movement was seen in prices of semis. Except Raipur and Mumbai market, prices in almost all the key markets either remained stable or increased by up to INR 200/t today.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices decreased by INR 200/t d-o-d today in Gujarat’s Alang market. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 38,300/t ex-yard. A drop in semi-finished steel prices in yesterday’s session and moderate buying inquires for scrap owing to weak sentiments in the spot market prompted suppliers to reduce offers.
Chennai: Today, semis prices in the Chennai market remained stable at INR 50,300/t, while rebar prices decreased by INR 200/t to INR 54,300/t exw. On the other hand, HMS 80:20 prices were assessed at 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 $430-435/t (including freight, which equates to approximately INR 37,700/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,200/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 15,350/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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