India: SteelMint's ferrous scrap index drops INR 300/t on weak steel demand

SteelMint's domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 41,300/t DAP Mandi Gobindgarh on 7 June, 2023. The Mandi market witnessed minimal trade activity today as monsoon blues gripped the market amid shortage of scrap.

Semi-finished steel market

Steel ingot prices in Mandi dipped 200/t d-o-d to INR 46,400/t at the time of reporting and price normalisation as buyers were silent amid dull market sentiments. Prices in almost all key markets decreased by up to INR 200-300/t. Selling pressure continues for ingot makers as only low volumes were traded today.

Import market trends

Indian buyers are active in the imported scrap market, with some small-parcel bookings heard. Continuous usage of sponge iron has kept scrap availability in check. Industry sources are of the view that scrap prices are at workable levels amid availability of sponge iron in the domestic market.

Overview of other markets

The price of ship-breaking melting scrap in Alang, Gujarat, decreased by INR 200/t on 7 July. The current price of HMS (80:20) is INR 37,100/t ex-yard. Slow semi-finished steel demand and limited trading in scrap weighed on prices.

The Raipur Market witnessed weak trading activity today as no major deals were heard. Billet prices in Raipur were assessed at INR 42,200/t, down INR 350/t d-o-d, while rebar prices stood at INR 45,200/t fell by INR 300/t d-o-d.

Price highlights

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

Domestic/imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $393-$395/t, which equates to approximately INR 34,870/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 34,200/t, falling by up to INR 100/t 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 15,400/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.