SteelMint: Domestic ferrous scrap index stable amid limited demand for finished steel

SteelMint's domestic scrap index remained stable as the market fluctuated in the range of INR 200/tonne (t) today. Meanwhile, end-user demand for steel continued to remain limited. End-cutting scrap prices were recorded at INR 42,700/t DAP Mandi Gobindgarh on 4 February, 2023.

Prices of steel ingots in Mandi Gobindgarh opened on a negative note in today's morning trade, but ended at their previous levels of INR 48,400/t at the time of reporting and price normalisation. Except in the Ludhiana market, prices in almost all the key markets either remained stable or 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.

However scrap prices in all other regions either remained stable or showed a downtrend.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market dropped INR 500/t d-o-d on 4 Feb'23. HMS (80:20) prices are assessed at INR 38,600/t exy. A downward correction in semi-finished steel prices and moderate buying inquiries for scrap prompted Alang scrap suppliers to reduce their offers.

Raipur: Today, semis prices in central India's Raipur market dropped by INR 250/t to INR 46,350/t, while rebar prices decreased by INR 200/t to INR 51,000/t. On the other hand, HMS 80:20 prices remained stable at INR 39,800/t DAP. The demand for finished steel is 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 $430-435/t (including freight, which equates to approximately INR 37,700/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,300/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 14,650/t.

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

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.