SteelMint's domestic scrap index rises by INR 400/t

SteelMint's domestic steel scrap (end-cutting) index increased by INR 400/tonne (t) to INR 42,600/t DAP Mandi Gobindgarh on 15 February, 2023.

The index increased as semi-finished and finished steel demand improved in today's trading session.

Steel ingots prices in Mandi Gobindgarh increased by INR 550/t d-o-d to INR 48,200/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.

Market movement is better as compared to the last trading session. However, trading in semi-finished and finished steel remained limited. As a result, liquidity issues persisted in the market.

"Semi-finished steel market in Mandi saw enough demand. This has led to an increase in prices," sources informed.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 300/t d-o-d on 15 February, 2023. As per SteelMint's assessment, HMS (80:20) prices stand at INR 38,800/t ex-yard. An uptick in semi-finished steel prices in yesterday's trading session and moderate demand for scrap from the induction furnace steel mills in Bhavnagar supported scrap offers.

Durgapur: The market was up on account of positive sentiments in the northern market which pushed sellers to raise their offers. Spot trade was moderate as price volatility continued throughout the day which kept buyers cautious.

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 38,900/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,300/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 14,600/t.

To see SteelMint's Melting Scrap Assessment, pricing methodology and specification documents, Click here

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