India: SteelMint's scrap index falls INR 200/t as semi-finished steel prices drop

SteelMint's domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) to INR 42,100/t DAP Mandi Gobindgarh on 1 May, 2023. Low demand for semi-finished and finished steel exerted downward pressure on scrap prices.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note in morning trade today at INR 47,500/t, but edged down later in the day to INR 47,300/t at the time of reporting and price normalisation. Prices in almost all the key markets either remained stable or decreased by up to INR 400/t today.

Trading in semi-finished and finished steel remained limited with only need-based purchases taking place. Also, liquidity issues persisted in the market, slowing down buying activity.

"There is lack of demand for finished steel and buyers remained silent, putting pressure on the market," a source informed.

Snapshots of other markets

Alang: Ship-breaking melting scrap HMS 80:20 prices remained stable d-o-d today at INR 39,000/t exy in Gujarat's Alang market. Even as buying inquiries for semi-finished and finished steel were limited in the last trading day, scrap offers were supported by good demand as material availability is a concern.

Jalna: Today, semis prices in western India's Jalna market inched down by INR 100/t to INR 47,200/t, while rebar prices decreased by INR 500/t to INR 54,000/t. On the other hand HMS 80:20 prices decliened by INR 500/t to INR 37,500/t.

Price highlights

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

Domestic/imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $423-$425/t, which equates to approximately INR 36,900/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,000/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 16,650/t.

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

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.