SteelMint's domestic scrap index stable amid limited steel demand

SteelMint's domestic scrap index remained almost stable as the market fluctuated in the range of INR 200/tonne (t) today. Meanwhile, end-user demand for steel continued to remain limited. End-cutting scrap prices were recorded at INR 43,600/t DAP Mandi Gobindgarh on 30 January, 2023.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note at INR 49,500/t in morning trade today, but edged down later in the day to INR 49,300-49,400/t at the time of reporting and price normalisation. Prices in all the key markets remained either stable or decreased by up to INR 100/t today.

Trading in semi-finished and finished steel remained limited with only need-based purchases taking place. Also, liquidity issues persisted in the market, putting a brake on buying.

The lack of demand among market participants led to limited spot trades, as buyers only purchased material as per their immediate requirements. Also, end cutting scrap is in short supply in the market.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 300/t d-o-d on 30 January. As per SteelMint's assessment, HMS (80:20) prices are at INR 39,100/t ex-yard. Moderate trade in semis and finished steel in the western region as well as active buying of scrap by the Bhavnagar-based induction furnace steel mills prompted suppliers to hike their offers.

Jalna: Today, semi-finished, finished steel and HMS 80:20 scrap prices in western India's Jalna market remained stable at INR 50,500/t, INR 57,300/t and INR 37,800/t DAP, respectively. The demand for finished material was very limited today.

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/t (including freight, which equated to approximately INR 37,300/t), while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 36,800/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 15,150/t.

To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.