SteelMint's domestic scrap index stable amid limited steel demand

SteelMint's domestic scrap (end-cutting) index remained unchanged d-o-d at INR 43,900/tonne (t) DAP Mandi Gobindgarh on 3 March, 2023. The index remained stable with the market showing negligible trade activities.

Steel ingots prices in Mandi Gobindgarh fell by INR 50/t d-o-d to INR 49,150/t at the time of reporting and price normalisation. Prices in almost all key markets decreased by up to INR 100-200/t today. Bulk bookings were absent from the market.

"Demand of finished steel is very limited and payment crisis is still affecting the market. There is also shortage of scrap in the market," a source informed.

"Buyers were active during second half of the trading session because of the apparent 'labour crisis' on account of Holi," the source further informed.

Payment cycle of electricity bills put pressure on the steel mills to increase sales, the source added.

Snapshots of other markets

Gujarat: Shipbreaking melting scrap prices in Alang, Gujarat, remained stable d-o-d as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 39,000/t exy. Key markets in the northern and western regions saw lack of trades in semis and finished steel yesterday. Meanwhile, moderate buying interest for scrap at current prices prompted suppliers to keep their offers stable today.

Jalna: Prices of semis dropped by INR 300/t to INR 48,700/t, while rebars prices fell by INR 200/t to INR 55,300/t. On the other hand, HMS 80:20 prices remained stable at INR 39,000/t.

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 $445-$460 t (including freight, which equates to approximately INR 39,865/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 37,500/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellets-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,200/t.

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