India: SteelMint's scrap index drops INR 100/t on limited demand
SteelMint’s domestic scrap (end-cutting) index decreased by INR 100/t d-o-d to INR 43,200/tonne (t) DAP Mandi Gobindgarh on 16 March, 2023. The index edged down...
SteelMint's domestic scrap (end-cutting) index decreased by INR 100/t d-o-d to INR 43,200/tonne (t) DAP Mandi Gobindgarh on 16 March, 2023. The index edged down slightly because of low trade enquiries for semi-finished and finished steel.
Steel ingots prices in Mandi Gobindgarh up by INR 50/t d-o-d to INR 48,950/t. Prices in almost all key markets decreased by up to INR 200-300/t today. No major deal was reported today.
With the state electricity board increasing charges by around 60 paise/unit, the conversion cost from scrap to ingot may increase up to 500/t in the coming days," sources informed.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap prices decreased by INR 500/t d-o-d in Gujarat's Alang on 16 Mar'23. As per SteelMint's assessment, HMS (80:20) prices stand at INR 39,000/t exy. A downward correction in semis and finished steel prices due to lack of demand and limited buying enquiries dragged down scrap prices.
Chennai: Prices of semi-finished and finished steel decreased by INR 500/t today. Billet prices stood at INR 49,500/t. Rebar prices stood at INR 54,000/t. HMS 80:20 scrap prices were assesed at INR 36,500/t DAP. GST raids are active in the Chennai region.
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-$455 t (including freight), which equates to approximately INR 39,864/t, while local scrap - HMS (80:20) - prices in Mumbai stood at INR 39,000/t DAP.
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 14,550/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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