India: SteelMint's scrap index remains stable d-o-d amid limited buying enquires

SteelMint's domestic scrap (end-cutting) index remained unchanged d-o-d at INR 44,000/tonne (t) DAP Mandi Gobindgarh on 20 February, 2023 The index remained stable with the market showing a slowdown in trade activities even as shortage of scrap persists in the market.

Steel ingots prices in Mandi Gobindgarh fell by INR 50/t d-o-d to INR 49,250/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 300-400/t today. Bulk bookings were absent from the market.

Throughout the day, only purchases based on immediate requirements continued to be made for semi-finished and finished steel. Additionally, liquidity issues persisted, slowing down buying activities.

Alang: Ship-breaking melting scrap HMS (80:20) prices remained stable d-o-d at INR 39,700/t exy today in Gujarat's Alang market. Prices remained flat amid steady semi-finished steel prices in the region and moderate buying inquiries for scrap, sources informed.

Chennai: The southern market showed limited movements in finished steel as semis and scrap prices remained stable d-o-d. Rebar prices in the Chennai market stand on INR 54,500/t

Price highlights

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

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $443-$445 t (including freight, which equates to approximately INR 38,998/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,700/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,550/t.

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