India: SteelMint's scrap index rises INR 500/t on improved steel demand
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SteelMint's domestic steel scrap (end-cutting) index rose by INR 500/t d-o-d to INR 42,800/t DAP Mandi Gobindgarh on 7 June, 2023. The Mandi market witnessed an improvement in semis demand, while soft demand continued for finished steel.
Semis market trend
Today, in Mandi, steel ingot prices rose by INR 400/t to INR 47,700/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by INR 200-500/t. Bookings for semis increased w-o-w. The second half of the trading session was favourable for ingot manufacturers, as improvement was seen in trade inquiries.
Imported scrap market
Indian imported scrap buyers mostly opted to wait and watch, as offers increased following Turkish deals. However, buyers are not ready to accept high offers and bids are at $430-435/t levels. Deals remained absent today.
Overview of other markets
Ship-breaking melting scrap prices in Alang, Gujarat, increased further by INR 500/t d-o-d today. As per SteelMint's assessment, HMS (80:20) prices opened at INR 38,700/t exy. Semi-finished steel prices increased during yesterday's trading session and active buying interest for scrap pushed suppliers to hike offers, sources informed.
In western India's Jalna today, prices of semis improved by INR 200/t to INR 45,200/t, while finished steel prices remained stable at INR 52,000/t. However, HMS 80:20 prices edged up by INR 300/t to INR 37,200/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 37,112/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,300/t, up 200/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 15,650/t.
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