India: SteelMint scrap index dips by INR 300/t on limited steel demand

SteelMint's domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 42,300/t DAP Mandi Gobindgarh on 29 April, 2023. Limited demand for semi-finished and finished steel was the primary reason for the price decline.

Today, steel ingot prices in Mandi edged down by INR 150/t d-o-d to INR 47,500/t at the time of reporting and price normalisation. Prices in almost all the key markets fell by up to INR 300/t.

Prices of other raw materials like scrap and sponge iron were determined by limited end-user demand. The local market has a significant amount of scrap, but liquidity issues are restricting trading.

Snapshots of other markets

Gujarat: In Gujarat's Alang, ship-breaking melting scrap HMS (80:20) prices remained stable d-o-d at INR 39,000/t exy on 29 April. Steady semi-finished steel prices and moderate buying inquiries for scrap prompted suppliers to keep offers stable.

Jalna: In Jalna, rebar prices were stable at INR 54,500/t exw, while HMS 80:20 prices were assessed at INR 38,000/t, stable 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 $428-$431/t, which equates to approximately INR 37,350/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,500/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 16,500/t.

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