India: SteelMint scrap index stable amid limited trade inquiries for finished steel

SteelMint's domestic scrap (end-cutting) index remained unchanged d-o-d at INR 43,900/tonne (t) DAP Mandi Gobindgarh on 2 March, 2023. The index remained stable with the market showing a slowdown in trade.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note in morning trade today at INR 49,300/t, but edged down later in the day to INR 49,200/t at the time of reporting and price normalisation.

Only purchases based on immediate needs for semi-finished and finished steel were made. Furthermore, market liquidity issues persisted, slowing down purchasing activity.

Because there is low demand for finished steel, bulk bookings in Mandi are limited, a source said.

Snapshots of other markets

Gujarat: Ship-breaking melting scrap prices in Alang remained stable d-o-d on 2 March, as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 39,000/t exy. Moderate trades were observed in semi-finished and finished steel during the last trading session and active buying enquiries for scrap in the region prompted suppliers to keep their offers stable today.

Chennai: Prices of finished steel fell by 200/t . Demand and trade in finished material remained limited, though. Rebar prices in Chennai were assessed at 53,800/t ex-works. Yet the growing number of GST raids is also having an impact on trade activities.

Price highlights

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

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $450-$463 t (including freight, which equates to approximately INR 40,416/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 37,500/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellets-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,400/t.

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