India: SteelMint's scrap index range-bound amid muted steel demand

SteelMint's domestic scrap (end-cutting) index edged down by INR 100/t d-o-d to INR 43,400/tonne (t) DAP Mandi Gobindgarh on 20 April, 2023. The index edged down as demand for semi-finished and finished steel remained low. Liquidity issues persisted in the market.

Today in Mandi, prices of steel ingot opened on a positive note at INR 48,700/t. However, due to limited demand in semis and finished steel, selling pressure prevailed on ingot manufacturers in the second half of the trading session. As a result, ingot prices fell to INR 48,500/t.

"Mandi scrap traders were dissatisfied because they are not receiving bulk orders from major mills," a scrap trader informed while speaking to SteelMint.

In Mandi Gobindgarh, the current conversion cost from old scrap to ingots was INR 10,500/t.

Snapshots of other markets

Gujarat: Ship-breaking melting scrap HMS (80:20) prices in Alang, Gujarat, remained unchanged d-o-d at INR 39,700/t exy. Although, key markets of northern and western regions witnessed lacklustre trade in semis and finished steel yesterday, active buying interest for scrap at current levels prompted suppliers to keep offers stable.

Chennai: The market witnessed limited demand for semis and finished steel. Prices of semi-finished and finished steel were stable d-o-d. Billet prices stood at INR 49,300/t. Rebar prices were at INR 54,200/t. HMS 80:20 scrap prices were assessed at INR 36,600/t DAP.

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-$438/t, which equates to approximately INR 38,162/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 16,400/t.

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