SteelMint's scrap index falls by INR 400/t tracking drop in steel prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 43,100/t DAP Mandi Gobindgarh on 24 January, 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 negative note in morning trade today, decreasing by INR 400/t to INR 49,000/t, but inching up later in the day to INR 49,100/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 400/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 silent, which is creating selling pressure and resulting in price correction," a source informed.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 300/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 38,500/t ex-yard. An uptick in semi-finished steel prices in the second half of yesterday's session and moderate buying interest for scrap from the induction furnace-based mills at Bhavnagar prompted suppliers to hike their offers.

Jalna: Today, semis prices in western India's Jalna market remained stable at INR 50,500/t, while rebar prices increased by INR 100/t to INR 57,000/t exw. On the other hand, HMS 80:20 prices edged up by INR 100/t to INR 38,000/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 15,500/t.

To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here

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