SteelMint's scrap index falls by INR 300/t tracking drop in steel prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 43,300/t DAP Mandi Gobindgarh on 31 January, 2023. Low demand for semi-finished steel and finished products put downward pressure on scrap prices.

Prices of steel ingots in Mandi Gobindgarh opened on a positive note at INR 49,300/t in morning trade today, but edged down later in the day to INR 49,100/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 300/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, slowing down buying activity.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices remained stable d-o-d today in Gujarat's Alang market. As per SteelMint's assessment, HMS (80:20) prices stand at INR 39,100/t exy. Moderate trade for semis and finished steel in the last trading session and decent bookings for scrap seen at the current price levels prompted sellers to keep offers stable.

Hyderabad: Today, semis prices in south India's Hyderabad market dropped by INR 250/t to INR 49,500/t, while rebars prices decreased by INR 500/t to INR 53,500/t. On the other hand, HMS 80:20 prices remained stable at INR 36,700/t DAP.

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 36,700/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 15,050/t.

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