India: SteelMint's ferrous scrap index rises by INR 400/t d-o-d on improved trade activity

SteelMint's domestic steel scrap (end-cutting) index climbed INR 400/tonne (t) d-o-d to INR 42,200/t DAP Mandi Gobindgarh on 18 September, 2023. In Mandi, the scrap market improved slightly from the previous trading session, and mills are purchasing domestic scrap at discounted prices. Meanwhile, there was plenty of steel scrap available on the market today. Sponge iron (CDRI) prices were up by INR 200/t to INR 36,500/t DAP.

Semis' market trend

Steel ingot prices in Mandi Gobindgarh rose by INR 400/t to INR 47,700/t at the time of reporting and price normalisation. Prices in almost all key markets increased in the range of INR 300/t. The steel market in Mandi is seeing increased trade activity at lower pricing. Steel makers in Mandi are hoping ingot prices will touch INR 48,000/t soon.

Overview of other markets

Ship-breaking melting scrap prices in Alang, Gujarat, remained steady d-o-d on 18 September, 2023. As per SteelMint's assessment, HMS (80:20) prices are at INR 39,200/t exy. Almost stable semi-finished and finished steel prices in Gujarat in the last trading session and moderate buying inquiries for scrap in the region prompted suppliers to keep offers firm.

Today in the Chennai market, the prices of semis and finished steel remained stable and were assessed at INR 48,000/t and INR 51,800/t, respectively. Meanwhile, HMS 80:20 prices inched up by INR 100/t to INR 36,000/t. Because of the Ganesh Chaturthi festival, the market was nearly closed today; nevertheless, both semi-finished and finished steel prices remained stable.

The Raipur market experienced average market trade activity in semi-finished and finished steel today, with buyers remaining silent for scrap. Billet prices were assessed at INR 45,250/t up by INR 300/t, while rebar prices stood at INR 47,700/t, stable 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 vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $406-$414/t, which equates to approximately INR 36,694/t (including freight). Meanwhile, in Mumbai, local scrap prices were unchanged, standing at INR 36,800/t, d-o-d. Furthermore, the imported ferrous scrap market in India was experiencing slowness today. Buyers had adopted wait-and-see stance amidst volatility in price (Market in fluctuating mode). Offers for containerised shredded scrap from Europe were heard at $425-$430/t CFR Nhava Sheva, while HMS (80:20) scraps were coming at $412-$415/t CFR. Shredded scrap offers from the US were heard at $422-$425/t CFR Nhava Sheva with trader deals heard at $429-$430/t with marginal hike from initial booking.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 13,750/t.

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