SteelMint’s domestic steel scrap (end-cutting) index fell by INR 700/tonne (t) to INR 43,700/t DAP Mandi Gobindgarh on 18 January, 2023. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.
Today, steel ingots prices in Mandi fell by INR 700/t d-o-d to INR 49,600/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 800/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, putting a brake on buying.
“There is low demand for finished steel and buyers are in silent mode, which is creating selling pressure and resulting in price correction,” a source informed.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices fell by INR 500/t d-o-d in Gujarat’s Alang market on 18 January. As per SteelMint’s assessment, HMS (80:20) prices stand at INR 39,500/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 forced suppliers to reduce their offers.
Hyderabad: Today, billet and HMS 80:20 scrap prices in southern India’s Hyderabad market remained stable. Rebar prices edged down by INR 250/t to INR 54,250/t.
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 38,100/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,500/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 15,450/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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