SteelMint's scrap index falls INR 400/t tracking drop in steel prices
SteelMint’s domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 42,900/t DAP Mandi Gobindgarh on 2 February, 2023. Low demand for semi-fin...
SteelMint's domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 42,900/t DAP Mandi Gobindgarh on 2 February, 2023. Low demand for semi-finished and finished steel products put downward pressure on scrap prices.
Today, steel ingots prices in Mandi fell by INR 300/t d-o-d to INR 48,700/t at the time of reporting and price normalisation. Prices in almost all the key markets 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 buyers are silent, which is creating selling pressure and resulting in price correction," a source informed.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices remained stable d-o-d on 2 February in Gujarat's Alang market. As per SteelMint's assessment, HMS (80:20) prices stand at INR 39,100/t exy. Largely stable semi-finished steel prices and moderate buying inquiries for scrap in the last trading session prompted suppliers to keep offers stable today.
Hyderabad: Today, prices of semis in the south India's Hyderabad market remained stable at INR 49,500/t, while rebar prices decreased by INR 500/t to INR 53,500/t. On the other hand, HMS 80:20 prices inched down by INR 100/t to INR 36,700/t. 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 equated to approximately INR 37,900/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,700/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 14,800/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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