SteelMint’s domestic steel scrap (end-cutting) index rose by INR 400/tonne (t) to INR 44,200/t DAP Mandi Gobindgarh on 27 December, 2022.
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 200/t d-o-d to INR 49,200/t at the time of reporting and price normalisation. Prices in almost all the key markets have increased. In Raipur, ingots prices increased by INR 900/t to INR 46,000/t today.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat’s Alang market rose by INR 500/t d-o-d on 27 December. HMS (80:20) prices are assessed at INR 38,600/t exy. Semi-finished steel prices moved up by INR 1,000/t to INR 48,200/t in Bhavnagar yesterday. This coupled with active buying inquiries for scrap prompted suppliers to increase their offers today.
Chennai: Today, billets prices in western India’s based Jalna market moved up by INR 800/t to INR 48,300/t, while HMS 80:20 prices increased by INR 500/t to INR 38,800/t. On the other hand, rebar prices were stable at INR 54,500/t exw.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 5,000-5,200/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $417-419/t (including freight, it comes to approximately INR 36,800/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 38,000/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 14,500/t.
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