India: SteelMint's scrap index falls INR 100/t on soft steel demand

SteelMint's domestic steel scrap (end-cutting) index fell by INR 100/tonne (t) to INR 43,000/t DAP Mandi Gobindgarh on 11 April, 2023. There was lack of demand for semi-finished and finished steel in the market.

Today, steel ingot prices in Mandi decreased by INR 200/tonne to INR 48,200/t at the time of reporting and price normalisation. Prices in almost all key markets fell by INR 200-300/t.

Trading in semi-finished and finished steel was still limited. Liquidity issues persisted in the market, slowing down buying activity.

In Mandi Gobindgarh, the current conversion cost from scrap to ingots was INR 10,500/t.

Snapshots of other markets

Gujarat: Ship-breaking melting scrap prices inched down by INR 200/t d-o-d in Gujarat's Alang market on 11 April, as per SteelMint's assessment. HMS (80:20) prices stand at INR 39,500/t ex-yard. Semi-finished steel prices fell in yesterday's trading session and subdued trading in the region prompted scrap suppliers to cut their offers today.

Chennai: Today, semis and finished steel prices were stable at 49,500/t while rebar prices stand at INR 54,300/t. The demand for finished steel was limited in the market.

Price highlights

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

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $438-$445 t (including freight), which equates to approximately INR 38,732/t. Local scrap (HMS 80:20) prices in Mumbai stood at INR 38,500/t DAP.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 16,000/t.

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

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