India: SteelMint's ferrous scrap index inches up d-o-d following uptick in semi-finished steel prices

SteelMint's domestic steel scrap (end-cutting) index edged up by INR 300/tonne (t) to INR 43,800/t DAP Mandi Gobindgarh on 12 January, 2023.

The index rose as semi-finished steel demand and prices improved in today's trading session.

In morning trade today in Mandi Gobindgarh, north India, steel ingots prices opened on a positive note, increasing by INR 400/t to INR 49,900/t but inched down later in the day to INR 49,800/t at the time of reporting and price normalisation. Prices in almost all the key markets either remained stable or increased by up to INR 500/t.

"During the first half today, the market remained positive and moderate volumes of semi-finished steel were traded, but in the second half buyers turned quiet," a source said.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market rose by INR 600/t d-o-d on 12 January. As per SteelMint's assessment, HMS (80:20) prices stand at INR 39,000/t ex-yard. An increase in semi-finished steel prices in yesterday's trading session, along with active buying interest for scrap by the induction furnace mills in Bhavnagar, nudged scrap suppliers to raise their offers, sources informed.

Hyderabad: Today, prices of semis in south India's Hyderabad market rose by INR 500/t to INR 49,000/t, while rebar prices increased by INR 500/t to INR 53,500/t. On the other hand, HMS 80:20 scrap prices rose by INR 400/t to INR 36,100/t DAP.

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 $435-440/t (including freight, which equates to approximately INR 38,100/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 pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 15,500/t.

To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here

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