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 43,300/t DAP Mandi Gobindgarh on 15 March, 2023. Domestic scrap is readily available in the market, as major mills are using imported scrap which is driving scrap prices down.

Today, steel ingots prices in Mandi edged down by INR 500/t d-o-d to INR 48,900/t at the time of reporting and price normalisation. Prices in almost all the key markets fell by up to INR 400/t today.

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

Snapshots of other markets

Gujarat: Ship-breaking melting scrap prices declined by INR 200/t d-o-d in Gujarat's Alang on 15 Mar'23, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 39,500/t exy. Limited trade in semi-finished and finished steel in the region coupled with limited buying inquiries for scrap, forced suppliers to reduce their offers today.

Jalna: Low demand for finished steel was seen in the Jalna market, which may have an impact on scrap prices. Rebar prices in Jalna stand at INR 55,400/t exw.

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 $445-$450 t (including freight), which equates to approximately INR 39,443/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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