India: SteelMint's scrap index drops INR 400/t d-o-d

SteelMint's domestic steel scrap (end-cutting) index decreased by INR 400/tonne (t) to INR 42,300/t DAP Mandi Gobindgarh on 20 March, 2023. Domestic scrap is readily available in the market and low demand for finished steel is the major reason behind the price drop.

Today, steel ingots prices in Mandi edged down by INR 400/t d-o-d to INR 48,000/t at the time of reporting and price normalisation. Prices in almost all the key markets fell by up to INR 400-500/t today.

The market for semi-finished and finished steel remained sluggish, weighed down by liquidity concerns due to lack of demand.

Snapshots of other markets

Gujarat: Ship-breaking melting scrap prices in the Gujarat's Alang market edged down by INR 200/t d-o-d on 20 March. As per SteelMint's assessment, HMS (80:20) prices stand at INR 38,500/t exy. Slow trading in semi-finished and finished steel over the last two days has dampened scrap demand, resulting in the drop in offers.

Jalna: Owing to their inability to sell finished steel today, the Jalna-based mills reduced their prices by about INR 1,000/t, but buyers are looking for further discounts. Rebar prices in Jalna were assessed at INR 54,900/t exw.

Price highlights

End-cutting and 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 $445-$455 t (including freight), which equates to approximately INR 39,768/t, while local scrap - HMS (80:20) - prices in Mumbai stood at INR 37,700/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 INR 14,900/t.

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

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