SteelMint's scrap index slips INR 300/t amid muted semi-finished market

SteelMint's domestic steel scrap (end-cutting) index edged down by INR 300/t d-o-d to INR 38,300/t DAP Mandi Gobindgarh on 11 November, 2023. Steel ingot prices in Mandi Gobindgarh declined by INR 200/t, settling at INR 44,000/t. Similarly, other significant markets witnessed either stable or price drops ranging from INR 100/t to INR 200/t.

The market experienced limited trade activities in steel materials due to the upcoming Dipawali festival. Labor shortages and transportation issues for steel continued to persist in the market.

Overview of other markets

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 11 Nov'23. HMS (80:20) prices stood at INR 36,800/t exy. With the approaching Dipawali festival, the steel market in the Bhavnagar and Alang areas is nearly closed, and delivery vehicles are only available for local supply. This situation has led scrap suppliers to maintain stable scrap prices today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread stood at INR 5,500-6,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $386-$390/t, which equates to approximately INR 34,500/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 33,500/t, constant d-o-d.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 13,800/t.

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