India: SteelMint's scrap index up INR 400/t on marginal improvement in steel demand
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SteelMint's domestic scrap (end-cutting) index increased by INR 400/t d-o-d to INR 43,400/tonne (t) DAP Mandi Gobindgarh on 13 April, 2023. The index rose amid marginal hike in demand for semi-finished and finished steel.
Steel ingots prices in Mandi edged up by INR 400 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 200-300 t today. The ingot market today saw some improvement compared to yesterday.
"As ingot prices increased by INR 200-300/t in the second half of the trading session today, buyers turned less active," a trader source informed SteelMint.
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 Gujarat's Alang market rose by INR 200/t d-o-d on 13 April. As per SteelMint assessment, HMS (80:20) prices stand at INR 39,500/t ex-yard. Increasing semi-finished steel prices as well as moderate buying interest for scrap encouraged suppliers to hike offers, sources informed.
Chennai: Semis prices rose by INR 200/t to 49,500/t while rebar prices remained stable at 54,300/t. HMS 80:20 prices improved by INR 100/t to INR 36,600/t. The demand for finished steel was limited in the market.
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 $440-$445/t,which equates to approximately INR 38,589/t(including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 38,000/t fell by 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 16,200/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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