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

SteelMint's domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 42,700/t DAP Mandi Gobindgarh on 18 March, 2023. Low demand for semi-finished and finished steel put downward pressure on scrap prices.

During morning trade today in Mandi Gobindgarh, north India, steel ingots prices opened at INR 48,600/t, but inched down later in the day to INR 48,400/t at the time of reporting and price normalisation. Prices in almost all the key markets either remained stable or decreased by up to INR 700/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.

"There is lack of demand for finished steel and buyers remained silent, putting pressure on the market," a source informed.

Snapshots of other markets

Alang: Ship-breaking melting scrap prices in the Gujarat's Alang market decreased by INR 300/t d-o-d on 18 March. As per SteelMint assessment, HMS (80:20) prices stand at INR 38,700/t exy. Lack of trade in semi-finished and finished steel along with limited buying inquiries for scrap in yesterday's trading session prompted suppliers to reduce offers.

Jalna: Today, semis prices in western India's Jalna market moved down by INR 200/t to INR 47,800/t, while rebar prices decreased by INR 100/t to INR 55,200/t. On the other hand, HMS 80:20 prices remained stable at INR 38,600/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 $445-$455 t (including freight), which equates to approximately INR 39,800/t, while local scrap - HMS (80:20) - prices in Mumbai were assessed at INR 38,500/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 14,500/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.