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

SteelMint's domestic scrap (end-cutting) index inched up by INR 100/t d-o-d to INR 43,400/tonne (t) DAP Mandi Gobindgarh on 6 April, 2023. The index rose slightly as demand for semi-finished and finished steel remained low. Scrap shortages and liquidity issue persisted in the market.

Today, steel ingots prices in Mandi edged down by INR 150/t d-o-d to INR 48,800/t at the time of publishing this insight. Prices in almost all key markets fell in the range of INR 100-200/t.

"Mandi scrap traders are 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 10,700/t.

Snapshots of other markets

Gujarat: Ship-breaking melting scrap prices in the Gujarat's Alang market fell for the second consecutive day. HMS (80:20) prices opened at INR 39,500/t ex-yard, down by INR 500/t d-o-d. The absence of market participants due to Ramadan along with lack of support from the semi-finished steel market forced suppliers to cut offers.

Jalna: Yesterday, the domestic steel mill price has improved due to good demand for finished and semi-finished. Major locations like Jalna or Mumbai received good trade deals. However, today prices are expected to remain at moderate level. Jalna billet prices stood at INR 48,300/t while rebar prices were assessed at INR 55,800/t ex-works.

Price highlights

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

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $435-$444 t (including freight), which equals to approximately INR 38,557/t. Local scrap - HMS (80:20) - prices in Mumbai rose by INR 1000/t d-o-d and stood at INR 39,000/t.

Raipur sponge iron-billet spread: The conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur was at INR 15,900/t.

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