India: SteelMint's ferrous scrap index remains stable

SteelMint's domestic steel scrap (end-cutting) index remained stable d-o-d at INR 44,500/t DAP Mandi Gobindgarh on 16 January, 2023. The index remained stable with the market showing a slowdown in trade activities today.

In morning trade in Mandi Gobindgarh, north India, steel ingot prices opened at INR 50,700/t and edged down to INR 50,600/t at the time of reporting and price normalisation. Prices in almost all the key markets, however, increased in the range of INR 100-600/t today.

Snapshots of other markets

Gujarat: Ship-breaking melting scrap prices in Gujarat's Alang market rose by INR 800/t on 16 January. As per SteelMint's assessment, HMS (80:20) prices stand at INR 39,800/t ex-yard. An increase in semi-finished steel prices in the last trading session and active buying interest for scrap by the induction furnace mills in Bhavnagar pushed suppliers to hike offers.

Chennai: In south India's Chennai market, billet prices went up by INR 300/t whereas rebar and scrap prices remained stable d-o-d.

Punjab: The market remained very slow throughout the day.

Jalna: Over the past two days, the market has seen a surge in sales of finished steel. As a result, mills have been raising purchase prices for scrap. Jalna scrap prices were recorded stable at the end of the day.

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 37,800/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 15,850/t.

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

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