India: SteelMint's scrap index inches up by INR 100/t d-o-d amid sluggish trade

SteelMint's domestic scrap (end-cutting) index inched up by INR 100/t d-o-d to INR 43,800/tonne (t) DAP Mandi Gobindgarh on 18 April, 2023. The index rose slightly in a market that saw sluggish trends in semis and finish steel. Moreover, scrap traders also received moderate order from mills.

Today, steel ingots 'prices in Mandi decreased by INR 200/t to INR 48,800/t at the time of reporting and price normalisation. Prices in almost all the key markets fell by INR 100-200/t today. Because of selling pressure and limited demand for finished steel, Mandi ingots fell in the second half of the trading session.

Today's semi-finished and finished steel markets remained down. Bulk orders have not been received by mills and scrap traders.

In Mandi Gobindgarh, the current conversion cost from scrap to steel ingots stood at INR 10,500/t.

Snapshots of other markets

Gujarat: Alang,ship-breaking melting scrap prices remained stable d-o-d on 18 April, as per SteelMint's assessment. HMS (80:20) prices were assessed at INR 39,700/t exy. Steady semi-finished and finished steel prices in Gujarat during the last trading session and moderate buying inquiries for scrap in the region prompted suppliers to keep offers stable today.

Jalna:Steel sales, in both finished and semi-finished, were moderate all day. According to sources, several mills provided spot booking discounts of 200-400/t,although this had no impact on scrap pricing. Prices for scrap stayed constant.

Chennai:The Chennai market was quiet today, owing to lacklustre demand for finished steel. Rebar prices stood at INR 54,200/t ex-works falling by INR 100/t d-o-d.

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 $433-$440/t ,which equates to approximately INR 38,287/t(including freight). Local scrap (HMS 80:20) prices in Mumbai rose to INR 38,500/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 16,350/t.

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