SteelMint: Improved semis demand lifts Mandi scrap index - 16 feb

SteelMint's domestic steel scrap (end-cutting) index increased by INR 500/tonne (t) to INR 43,100/t DAP Mandi Gobindgarh on 16 February, 2023.

The key factor supporting hike in scrap prices has improved demand for semi-finished steel amid limited availability of the material.

A shortage of scrap in Mandi market caused ingots manufacturers to reduce their conversion spread by INR 200/t d-o-d. Current conversion spread (scrap to ingot) is at INR 10,700/t compared to INR 10,900/t previously.

Steel ingots prices in Mandi Gobindgarh increased by INR 300/t d-o-d to INR 48,500/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 400-500/t today.

Ship-breaking melting scrap HMS (80:20) prices increased sharply by INR 700/t d-o-d to INR 39,500/t exy-Alang today. "Increased semis prices in northern region and slow scrap arrivals in the local market pushed suppliers to hike offers," a source said. It has also been learnt that a Hazira-based steel plant has recently booked 600-700 t of PNS scrap at INR 39,850/t exy-Mumbai.

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 $433-$443 t (including freight, which equates to approximately INR 38,500/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,500/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 14,900/t.

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