SteelMint's domestic scrap index rises INR 400/t as semis prices increase

SteelMint's domestic steel scrap (end-cutting) index rose by INR 400/tonne (t) to INR 42,200/t DAP Mandi Gobindgarh on 14 February 2023. Meanwhile, end-user demand for steel continues to remain limited.

In yesterday's late-hours trading session, some finished steel sellers increased prices to boost the market. This lifted the index, sources informed.

Steel ingots prices in Mandi Gobindgarh increased by INR 150/t d-o-d to INR 47,650/t at the time of reporting and price normalisation. In the first half of today's trading session, the market opened on a positive note, but in the second half, no major movement was seen.

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.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market rose by INR 500/t d-o-d today. As per SteelMint's assessment, HMS (80:20) prices stand at INR 38,500/t exy. Semi-finished steel prices increased in northern region in yesterday's trading session. This coupled with active scrap buying by Bhavnagar-based induction furnace mills prompted suppliers to raise offers.

Chennai: Today, semis prices in southern India's Chennai market rose by INR 500/t to INR 49,500/t while rebar prices were stable at INR 53,800/t. HMS 80:20 prices also remained stable at INR 36,800/t DAP. Demand for finished steel is limited in the market.

Jalna: In Maharashtra's Jalna market, semi prices rose by INR 900/t to INR 48,300/t while rebar prices edged up by INR 200/t to INR 55,200/t ex works. The market saw limited buying activity.

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 $433-446/t (including freight, which equates to approximately INR 39,148/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 14,500/t.

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