India: SteelMint's scrap index inches up by INR 100/t amid subdued trade in semis

India domestic steel scrap (end-cutting) index inched up by a slim INR 100/tonne (t) d-o-d to INR 43,000/t DAP Mandi Gobindgarh on 12 June, 2023. Limited trade inquiries in semis and moderate offtake in finished steel were observed in the Mandi market.

Semis' market trend

In Mandi today, steel ingot prices edged up by INR 200/t to INR 48,000/t at the time of reporting and price normalisation. Prices in almost all key markets increased by INR 100-200/t. Buyers stayed mute today, in contrast to yesterday's trading session, and Mandi witnessed below-average activity in semis.

Mandi scrap market

Mill owners are procuring domestic scrap from local scrap traders as imported scrap is still costly compared to domestic scrap.

Imported scrap market

Indian buyers are more cautious as the domestic market is unsupportive. Despite limited buying inquiries for semi-finished and finished steel, domestic scrap offers remained supported by moderate demand amid supply concerns. Imported scrap buyers expect the global market to go down, although the Indian market seems very poor currently. Offers are mostly unchanged from the last closing.

Overview of other markets

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 12 June. As per SteelMint's assessment, HMS (80:20) prices stood at INR 38,600/t exy. Steady semi-finished steel prices in Gujarat and moderate buying inquiries for scrap in the region prompted suppliers to keep offers stable.

Jalna:Today, in the Jalna market, located in western India, prices of semis experienced a decrease of INR 200/t, reaching INR 45,000/t. Meanwhile, finished steel prices remained stable at INR 51,800/t. On the other hand, HMS 80:20 prices witnessed a decline of INR 300/t, touching INR 37,100/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 $419-$423/t, which equates to approximately INR 37,084/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,000/t fell upto INR 200/t d-o-d.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 15,800/t.

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

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