India: SteelMint's scrap index rises as steel prices inch up
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SteelMint's India domestic steel scrap (end-cutting) index rose slightly by INR 200/t d-o-d to INR 42,700/t DAP Mandi Gobindgarh on 9 June, 2023. The market witnessed moderate trade activity, while bulk bookings of scrap were totally absent from the market.
Semis market trends
In Mandi today steel ingot prices inched up by INR 100/t to INR 47,700/t at the time of reporting and price normalisation. Prices in almost all key markets increased by INR 100-200/t. The Mandi market saw moderate demand for semi-finished steel.
Imported scrap market
Indian scrap buyers were less active in the market today. Buyers were looking for clear price direction. Interestingly, people were looking for domestic substitutes at workable prices. Imported scrap prices are now at $440-445/t CFR levels.
Overview of other markets
Ship-breaking melting scrap prices dropped by INR 200/t d-o-d in Gujarat's Alang on 9 June. As per SteelMint's assessment, HMS (80:20) prices stand at INR 38,600/t exy. Drop in semi-finished steel prices in yesterday's trading session along with limited trading activities for scrap at current prices prompted suppliers to lower offers today.
The Mumbai market saw modest trade for finished steel due to fluctuations in steel billet prices in the northern region. Due to slight shortage of scrap in the region, participants are not interested to reduce prices and adjusted trade discounts as per payment and delivery terms. HMS (80:20) in Mumbai hovered at INR 37,000-37,400/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 $419-$423/t, which equates to approximately INR 37,086/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,200/t fell up to INR 100/t d-o-d.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 15,550/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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