India: SteelMint's scrap index rises INR 200/t on improved steel prices

SteelMint's domestic steel scrap (end-cutting) index climbed INR 200/t d-o-d to INR 37,200/t DAP Mandi Gobindgarh on 29 December, 2023. The scrap market in Mandi witnessed an improvement, driven by increased demand and prices in both the semi-finished and finished markets during today's trading session.

Steel ingot prices in Mandi Gobindgarh rose by INR 200/t to INR 42,700/t at the time of reporting and price normalisation. Prices in almost all key markets increased in the range of INR 100/t to 200/t. The market showed improvement in steel trades and prices during the first half of the day, but later in the second half, it reverted to a silent mode.

Overview of other markets

Alang: Ship-breaking melting scrap prices inched down by INR 100/t d-o-d in Gujarat's Alang market on 29 December, 2023. SteelMint assessed opening prices of HMS (80:20) at INR 34,800/t ex-yard. Limited trade in semi-finished and finished steel in the yesterday's trading session, coupled with moderate buying inquiries for scrap prompted suppliers to reduce offers today.

Hyderabad: During today's trading session, the market observed limited demand for finished steel material. Rebar and HMS 80:20 prices dropped by INR 500/t, assessed at INR 45,000/t and INR 31,700/t, respectively, while billet prices remained steady, settling at INR 41,000/t ex-works.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread stood at INR 5,500-6,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $386-$390/t, which equates to approximately INR 34,600/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 33,500/t, stable 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 13,150/t.

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