India: SteelMint's scrap index rises INR 300/t d-o-d

SteelMint's domestic steel scrap (end-cutting) index rose by INR 300/t d-o-d to INR 42,100/t DAP Mandi Gobindgarh on 12 May, 2023. The market saw some improvement in demand for semi-finished steel today.

In Mandi, steel ingot prices inched up by INR 300/t to INR 47,100/t at the time of reporting and price normalisation. Prices in almost all key markets either remained stable or increased by INR 300/t. Demand for semi-finished steel remained firm today.

Trade inquiries for scrap increased as Indian customs has stopped import clearances for scrap from the UAE, and major mills are looking for domestic scrap, a trader source informed SteelMint.

Overview of other markets

Alang: Ship-breaking melting scrap prices inched down by INR 200/t d-o-d in Gujarat's Alang market on 12 May, 2023, SteelMint's assessment shows. HMS (80:20) prices stand at INR 38,300/t ex-yard. Semi-finished steel prices fell in yesterday's trading session. Moreover, subdued trading activity in the region prompted scrap suppliers to cut their offers today.

Chennai: In Chennai, demand for finished steel is still very limited, and inventories are increasing d-o-d. Today, semis prices edged down by INR 200/t to INR 46,800/t and finished steel prices decreased by INR 300/t to INR 52,500/t, while HMS scrap prices remained stable at INR 35,500/t.

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 $420-$425/t, which equates to approximately INR 37,100/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,200/t DAP.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 15,300/t.

To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here

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