India: SteelMint's domestic scrap index falls INR 200/t as steel prices decline

SteelMint's domestic scrap index remained almost stable as the market fluctuated in the range of INR 200/t today. Meanwhile, end-user demand for steel continued to remain limited. SteelMint's domestic steel scrap (end-cutting) index decreased by INR 200/tonne (t) to INR 41,800/t DAP Mandi Gobindgarh on 11 February, 2023.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note in morning trade today at INR 47,500/t, but edged down later in the day to INR 47,300/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 300/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, slowing down buying activity.

"Demand of finished material is very limited and payment crisis is still affecting the market. On the other hand there is a huge shortage of scrap in the market," sources informed SteelMint.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 11 Feb'23. As per SteelMint's assessment, HMS (80:20) prices are assessed at INR 38,000/t exy. Limited semis trade was seen in the key markets of northern and western India in yesterday's session. However, active buying inquiries for scrap at current prices prompted suppliers to keep offers stable.

Chennai: Demand for finished steel is limited in the market. Prices of HMS(80:20) stand at INR 36,900/t DAP.

Jalna: Semis prices in the Jalna market declined by INR 100/t to INR 47,500/t, while rebar prices remained stable at INR 55,000/t. On the other hand, HMS 80:20 prices inched down by INR 200/t to INR 36,800/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 $438-$448 t (including freight, which equates to approximately INR 39100/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 35,800/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 14,000/t.

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

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