India: SteelMint domestic scrap index almost stable d-o-d amid limited trade enquiries

SteelMint's domestic steel scrap (end-cutting) index fell by INR 100/tonne (t) to INR 42,200/t DAP Mandi Gobindgarh on 21 March, 2023. The market's easy access to domestic scrap and the lack of demand for finished steel are the main causes of the price decline.

Today, steel ingot prices in Mandi were up by INR 100/t d-o-d at INR 48,100/t at the time of reporting and price normalisation. Prices in almost all the key markets increase up to INR 100-200/t today.

The semi-finished and finished steel markets remained weak. Liquidity issues presisted as a result of which bulk bookings were avoided.

Snapshots of other markets

Gujarat: Ship-breaking melting scrap prices decreased further by INR 200/t d-o-d in Gujarat's Alang market. HMS (80:20) prices opened at INR 38,300/t exy today. Semi-finished steel prices fell in yesterday's trading session. This, coupled with moderate trading in scrap, resulted in a further drop in offers.

Chennai: Low trading activity was evident in the Chennai market today due to lacklustre demand for finished steel and the ongoing GST raid. Rebar prices in Chennai stood at INR 53,700/t ex-works. India's major steel manufacturers recently procured around 3,000 t of CR busheling (bundle) scrap at INR 41,500/t ex-Chennai.

Price highlights

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $440-$453 t (including freight), which equates to approximately INR 39,633/t, while local scrap - HMS (80:20) - prices in Mumbai stood cheaper at INR 37,700/t DAP.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 15,000/t.

To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here

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