SteelMint's domestic scrap index falls by INR 100/t as semi-finished steel prices drop
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...
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 100/tonne (t) to INR 44,400/t DAP Mandi Gobindgarh on 17 January, 2023.
During morning trading today in Mandi Gobindgarh, north India, steel ingots prices opened on a negative note, decreasing by INR 400/t to INR 50,200/t, but inching up later in the day to INR 50,300/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. In addition, liquidity issues persisted in the market, putting a brake on buying.
"There is low demand for finished steel and buyers are in a silent mode, 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 saw an uptick of INR 200/t d-o-d on 17 January. As per SteelMint's assessment, HMS (80:20) prices stand at INR 40,000/t ex-yard. Increasing semi-finished steel prices along with moderate buying interest for scrap by the induction furnace mills in Bhavnagar prompted suppliers to hike offers, sources informed.
Chennai: Today in southern India's Chennai market billets and rebars prices remained stable. While HMS 80:20 prices edged up by INR 300/t to INR 36,000/t DAP. Market movement remained silent due to Pongal festival celebration.
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 $435-440/t (including freight, which equates to approximately INR 38,100/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 37,800/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 15,650/t.
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