India: SteelMint's scrap index rises 300/t d-o-d amid marginal improvement in finished steel demand

SteelMint's domestic scrap (end-cutting) index edged up by INR 300/t d-o-d to INR 43,100/tonne (t) DAP Mandi Gobindgarh on 4 April, 2023. The index rose slightly as finished steel trade improved d-o-d today.

Steel ingots prices in Mandi edged up by INR 200/t d-o-d to INR 48,800/t at reporting time. Prices in almost all key markets rose in the range of INR 200-400/t today.

Scrap shortage and liquidity problems persisted, though. As a result, mills were not keen for bulk orders.

In Mandi Gobindgarh, the current conversion cost from old scrap to ingots is INR 10,900/t.

Snapshots of other markets

Gujarat:Ship-breaking melting scrap prices dropped INR 200/t d-o-d in Gujarat's Alang market. HMS (80:20) prices opened at INR 40,500/t ex-yard. Limited trade in the semi-finished and finished steel coupled with fewer buying inquiries pushed suppliers to reduce offers.

Raipur:Today the market for semi-finished and finished steel remained moderate. Prices of pig iron increased up to INR 500/t to INR 41,000/t, while end-cutting scrap prices rose by INR 300/t to INR 41,300/t.

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 $433-$440/t,which equals to approximately INR 38,370/t(including freight).Local scrap - HMS (80:20) - prices in Mumbai stood at INR 38,000/t.

Raipur sponge iron-billet spread: The conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur is calculated at INR 16,000/t.

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