India: SteelMint's ferrous scrap index drops INR 400/t w-o-w
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SteelMint's domestic steel scrap (end-cutting) index dipped INR 300/t d-o-d to INR 40,500/t DAP Mandi Gobindgarh on 12 August, 2023. In Mandi, scrap prices fell by INR 400/t w-o-w as semis prices dropped INR 400/t w-o-w.
The weekly scrap market in Mandi resumed with moderate trading activity as mills continued to procure scrap at standard costs and looked for discounted offers in the imported scrap market.
Semi-finished steel market
Steel ingot prices in Mandi inched down by INR 400/t to INR 45,400/t at the time of reporting and price normalisation. Meanwhile, prices in other key markets decreased in the range of INR 100-300/t.
The market witnessed minimal work in semi-finished and finished steel, as small mills cut their production levels. In north India mills are hoping for some improvement in steel demand, and prices may rise next week.
Weekly imported scrap market
The Indian imported scrap market continued its upward trend. With the domestic market remaining stagnant, buyers showed less interest. The semi-finished and finished markets did not witness any significant sales. Steel producers are closely monitoring the market dynamics in India as steel demand is showing signs of improvement. In July, the consumption of imported scrap increased by 10% y-o-y. Given the active participation of scrap buyers, suppliers are hesitant to reduce offers. Some buyers are anticipating a cooling-off period in prices, as per sources.
For Europe-origin HMS(80:20), offers (on CFR Nhava Sheva basis) were assessed at $395-400/t. Meanwhile, bids were reportedly in the range of $390-392/t, reflecting a decrease of $5-8/t. West African HMS (80:20) was priced at $390-392/t for west coast India and $395-398/t for south coast India this week.
Overview of other markets
Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 200/t d-o-d on 12 August, as per SteelMint's assessment. HMS (80:20) prices were assessed at INR 36,000/t exy. The semi-finished steel market was slow in yesterday's trading session and limited trading in scrap prompted suppliers to reduce offers today.
In Raipur, the semi-finished and finished steel markets witnessed moderate demand, while local scrap traders opted to wait and watch as they didn't want to conclude deals at lower prices. Billet prices fell up to INR 200/t to INR 41,650/t while PDRI sponge prices stood at INR 28,350/t decreased by INR 150/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 are at around $392-$400/t, which equates to approximately INR 35,382/t (including freight). Meanwhile, in Mumbai local scrap prices stood at INR 35,000/t DAP.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 13,300/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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