India: SteelMint's scrap index stable despite soft steel demand

SteelMint's domestic steel scrap (end-cutting) index remained stable d-o-d at INR 41,700/t DAP Mandi Gobindgarh on 28 June, 2023. Limited trade inquiries continued in the market, while buyers remained silent today amid need-based deals heard in the market.

Semis market trend

Steel ingot prices in Mandi remained stable d-o-d at INR 46,800/t at the time of reporting and price normalisation. Meanwhile, prices in other key markets decreased by up to INR 200/t. Modest trade in semi-finished and finished steel was seen in the market. Major mills in Mandi raised their usage of sponge iron.

Imported scrap market

India's imported scrap buyers were visible on the market, with some small bookings heard concluded. The continued downtrend in imported scrap prices slowed down in the absence of other market players.

Overview of markets

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 28 June. HMS (80:20) prices stood at INR 38,600/t exy. Even as buying inquiries for semi-finished and finished steel were limited in yesterday's trading session, scrap offers remained supported on moderate demand as material availability concerns persisted.

The Raipur market witnessed dull buying activity in semi-finished and finished steel, while raw material prices continued to decline. Billet prices in raipur stood up at INR 43,200/t exw, while pig iron prices down by INR 300/t d-o-d to INR 40,400/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 $398-$400/t, which equates to approximately INR 35,026/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 36,500/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 16,150/t.

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