India: SteelMint's scrap index remains stable on limited buying enquiries

SteelMint's domestic scrap (end-cutting) index remained unchanged d-o-d at INR 42,400/tonne (t) DAP Mandi Gobindgarh on 9 February, 2023 The index remained stable with the market showing a slowdown in trade activities, shortage of scrap arises in the market

Today, steel ingots prices in Mandi rise by INR 100/t d-o-d to INR 47,900/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 300/t today.

Only purchases based on need continued to be made for semi-finished and finished steel. Additionally, market liquidity problems persisted, slowing the buying process.

"Mandi not above 48000 The market may reverse up to 47000, but scrap shortages may prevent finished prices from falling further; if semis prices fall, scrap sourcing will be difficult" a source informed

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, opened stable d-o-d today. As per SteelMint's assessment, HMS (80:20) prices are at INR 38,000/t exy. Active buying enquiries at current prices supported scrap offers even as semi-finished and finished steel prices decreased in the last trading session.

Jalna: Yesterday all the major mills in Jalna-Maharashtra reduced their finished steel prices by around INR 500/t, but there has been no improvement in sales, and end users are still hoping for some more price corrections in the near future. The tight supply of melting scrap has prevented buyers from reducing their prices as much.tmt prices of chennai stands at 55,500/t ex-works

Chennai: Prices of semis, finish steel and scrap are remain stable in the market for today's session, while demand and trades of finish material is limited. rebar price of Chennai stands at 54,300/t ex-works

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 38,180/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,000/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 14,150/t.

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

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