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 43,300/tonne (t) DAP Mandi Gobindgarh on 1 February, 2023 even as the market saw price fluctuations up to INR 400/t today. The index remained stable with the market showing a slowdown in trade activities today.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note in morning trade today, increasing by INR 400/t to touch INR 49,500/t, but edged down later in the day to INR 49,100/t at the time of reporting and price normalisation.

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.

"In the first half of the session, market participants increased semis' prices on expectation of some good news for the steel industry from the annual Budget. But, in the second half, since there were no major announcements on the sector and with limited demand for semis and finish steel, participants were forced to reverse the prices to their previous levels," market sources informed to SteelMint.

Snapshots of other markets

Alang: In Gujarat's Alang market, ship-breaking melting scrap prices remained stable today, as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 39,100/t exy. Key markets in the northern and western regions saw lack of trade in semis and finished steel yesterday. However, active scrap buying enquiries at current prices prompted suppliers to keep their offers stable today.

Chennai: Today, semis prices in south India's Chennai market remained stable at INR 51,000/t, while rebar prices increased by INR 200/t to INR 54,700/t. On the other hand, HMS 80:20 prices increased by INR 100/t to INR 37,100/t. Demand for finished steel is very limited in the market.

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/t (including freight, which equated to approximately INR 37,300/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,700/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 15,000/t.

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

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