India: SteelMint scrap index rises by INR 200/t d-o-d amid scrap shortage
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SteelMint's domestic steel scrap (end-cutting) index increased by INR 200/t d-o-d to INR 42,600/t DAP Mandi Gobindgarh on April 28, 2023. As liquidity issues and scrap shortage continued to hamper market activity, demand for semis and finished steel was limited.
Today, steel ingot prices in Mandi edged up by INR 200/t d-o-d to INR 47,800/t at the time of reporting and price normalisation. Prices in almost all key markets rose by INR 100/t.
Today, in Mandi, the semis and finished markets were calm, with few transactions seen, since the sector is currently experiencing liquidity issues and scrap shortage.
"Furthermore, the market has been relatively quiet over the last two days, with only minor trade activity seen," said an ingots manufacturer.
In Mandi Gobindgarh, the current conversion cost from scrap to ingots stood at INR 10,600/t.
Snapshots of other market
Gujarat: Ship-breaking melting scrap HMS (80:20) prices remained stable d-o-d at INR 39,000/t exy in Alang, Gujarat on 28 April. Limited buying inquiries for semis and finished steel in the last trading session and decent scrap buying at current prices prompted suppliers to keep offers stable.
Chennai: The market saw modest demand in semis and finished steel. Billet prices in Chennai fell up to INR 200/t to INR 48,100/t while rebar prices in this city were assessed at INR 53,500/t ex-works.
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 37,449/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 stood at INR 16,500/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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