India: SteelMint's scrap index stable despite low trade enquiries
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SteelMint's domestic steel scrap (end-cutting) index remained stable at INR 43,500/t DAP Mandi Gobindgarh on 15 April, 2023. Today in Mandi, the market for semis and finished steel was muted compared to yesterday's trading session.
Steel ingots prices in Mandi inched up by INR 50/t d-o-d to INR 48,800/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 100-200/t today.
"Today's Mandi market is quiet since ingot production units are not receiving bulk bookings at the moment," a mill owner informed SteelMint.
"Scrap traders are unwilling to book new material at the present base price because they are preoccupied with delivering prior bookings," a trader informed.
In Mandi Gobindgarh,the current conversion cost from scrap to steel ingots stood at INR 10,500/t.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap prices in Alang, Gujarat, opened stable d-o-d today. As per SteelMint's assessment. HMS(80:20) prices stand at INR 39,900/t exy. Though semi-finished and finished steel prices increased in the last trading session, buying enquiries for scrap remained limited, prompting suppliers to keep offers stable.
Raipur: Today's Raipur market showed limited demand for semi-finished and finished steel. Billet prices were assessed at INR 46,600/t, down INR 100/t d-o-d, while rebar prices stood at INR 50,900/t ex-works.
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 $435-$445/t ,which equates to approximately INR 38,621/t(including freight). Local scrap(HMS 80:20) prices in Mumbai stood at INR 38,000/t DAP.
Raipur sponge iron-billet spread:The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 16,200/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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