India's domestic steel scrap index rises on persistent supply concerns
SteelMint’s domestic steel scrap (end-cutting) index increased by INR 900/tonne (t) to INR 44,000/t DAP Mandi Gobindgarh on 17 February, 2023. The primary cause...
SteelMint's domestic steel scrap (end-cutting) index increased by INR 900/tonne (t) to INR 44,000/t DAP Mandi Gobindgarh on 17 February, 2023.
The primary cause of the scrap price increase has been an increased demand for semi-finished steel due to limited availability of the material.
Due to scrap shortage in mandi market, ingots manufacturers reduced their conversion spread by INR 200/t d-o-d. Current conversion spread (scrap to ingots) is at INR 10,500/t compared to INR 10,700/t previously.
Steel ingots prices in Mandi Gobindgarh increased by INR 750/t d-o-d to INR 49,250/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 500-600/t today.
Snapshots of other markets
Alang: Ship-breaking melting scrap prices in Gujarat's Alang market rose by INR 200/t d-o-d on 17 February, 2023. As per SteelMint's assessment, HMS (80:20) prices stand at INR 39,700/t ex-yard. Prices of semi-finished steel rose in yesterday's trading session and scrap buying by Bhavnagar-based induction furnace mills remained active, prompting suppliers to hike offers.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 5,000-5,500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $430-$440 t (including freight, which equates to approximately INR 38,650/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,700/t.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,850/t.
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