SteelMint's domestic scrap index falls INR 400/t as semi-finished steel prices drop

SteelMint's domestic steel scrap (end-cutting) index decreased by INR 400/tonne (t) to INR 44,200/t DAP Mandi Gobindgarh on 6 January, 2023.

During morning trading today in Mandi Gobindgarh, north India, steel ingots prices opened on a negative note, decreasing by INR 500/t to INR 49,300/t, but inching up later in the day to INR 49,600/t at the time of reporting and price normalisation. Prices in almost all the key markets either remained stable or decreased by up to INR 500/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, putting a brake on buying.

"There is low demand for finished steel and inventories are continuously increasing, 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 dropped marginally by INR 100/t d-o-d on 6 January, 2022. HMS (80:20) prices are assessed at INR 39,000/t exy. Limited trade in the semi-finished steel segment in key markets in the northern and western regions on the last trading day and steady scrap prices over the past few days prompted suppliers to cut offers today.

Hyderabad: Today, semis prices in south India's Hyderabad market moved down by INR 500/t to INR 48,500/t, while rebar prices also decreased to INR 53,000/t. On the other hand, HMS 80:20 prices edged down by INR 100/t to INR 36,200/t DAP.

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 $435-438/t (including freight, which equates to approximately INR 38,400/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 38,000/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 15,050/t.

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