India: SteelMint scrap index rises on improved trades; supply shortage persists

SteelMint's domestic steel scrap (end-cutting) index rose INR 300/tonne (t) to INR 46,300/t DAP Mandi Gobindgarh on 15 September, 2022.

Steel ingots prices in Mandi Gobindgarh increased by INR 250/t d-o-d to INR 51,000/t at the time of reporting and price normalisation.

Indian steel producers, mainly in the northern region, are facing challenges in sourcing scrap. Buyers raised their bids to secure adequate volumes following a marginal rise in semi-finished steel prices. Imported scrap delivery also commenced but was insufficient to fulfill the needs of the Mandi-based mills.

There is still pressure on re-rollers such as the structure and patra mills to sell finished products because retail demand is yet to pick up.

Market highlights-

End-cutting and ingot spread: In Mandi, the end-cutting scrap and ingot spread remained unchanged today at INR 5,800-6,000/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $435-450/t while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 39,500/t.

Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 15,400/t.

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