India: SteelMint scrap index climbs by INR 500/t d-o-d as steel demand improves

SteelMint's domestic steel scrap (end-cutting) index climbed by INR 500/t d-o-d to INR 41,400/t DAP Mandi Gobindgarh on 8 May, 2023.

Last week, the Mandi market witnessed limited bookings for scrap due to modest steel demand. However, trade inquiries for the raw material have seen an improvement since the last couple of days with a pick up in steel demand. The evening session on 6 May (Saturday) was favourable for ingot makers and scrap traders, as inquiries increased at evening ingot prices of INR 46,200-46,300/t.

Today, in Mandi, steel ingot prices rose by INR 500/t to INR 46,600/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by INR 200-400/t. Bookings for semis increased in comparison to the previous week.

Meanwhile, scrap availability in the Mandi market has remained low with an increase in bookings today.

Imported scrap market

India's imported scrap market was silent today with nominal bookings seen. Today, prices of shredded scrap of Europe-origin stood at $430/t while the same grade scrap of US-origin was assessed at $423/t.

Imported shredded scrap prices fell by $6 compared to last week.

Overview of other markets

Alang: Ship-breaking melting scrap prices edged up by INR 200/t d-o-d today. HMS (80:20) prices opened at INR 37,500/t exy. The recovery in semi-finished steel prices in the late hours of the last trading session triggered buying interest for scrap, resulting in a hike in offers.

Raipur: The market saw an improvement in trade of semis and finished steel. Billet prices were assessed at INR 44,100/t, increasing by INR 700/t d-o-d while rebar prices stood at INR 47,500/t up by INR 200/t d-o-d.

Price highlights

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

Domestic/imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $410-$415/t, which equates to approximately INR 36,142/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 36,500/t DAP.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 16,000/t.

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