India: SteelMint's scrap index dips by INR 200/t amid subdued market sentiments

Domestic steel scrap (end-cutting) index fell by INR 200/t d-o-d to INR 38,300/t DAP Mandi Gobindgarh on 13 December, 2023. Local mills are showing interest in procuring domestic scrap in sizeable quantities but the downtrend prices in semi-finished steel are prompting suppliers to tread with caution on new orders.

Steel ingot prices in Mandi Gobindgarh declined by INR 200/t, to INR 43,800/t at the time of price normalisation. Similarly, other significant markets witnessed price drops ranging from INR 100/t to INR 400/t. Trading momentum is subdued owing to limited demand for semi-finished and finished steel and liquidity issues.

Overview of other markets

Alang: Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 500/t d-o-d on 13 December'23. HMS (80:20) prices were assessed at INR 36,200/t exy. The difference between bids and offers for scrap in Alang has widened due to the arrival of a significant quantity of imported scrap, previously booked at lower prices, prompting suppliers to reduce their offers today.

Jalna: In today's Jalna market, situated in western India, the prices of semis and HMS 80:20 remained stable at INR 43,300/t and INR 34,800/t, respectively, while rebar prices fell by INR 400/t to INR 49,200/t. In today's market, trade activities for finished steel were moderate. However, there has been a good influx of scrap in the mills as mill owners secured a substantial quantity of scrap at higher prices in the past few days.

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 $401-$406/t, which equates to approximately INR 36,000/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 34,200/t, inched down by INR 100/t.

In India, indicative prices for shredded scrap from Europe were reported at $426-430/t CFR, while from the United States offers were at $422-425/t CFR.

As per market sources, Indian market is currently in a slow phase, those who are buying imported scrap because of quality in domestic scrap fluctuates that affects yield in production. Indian buyers are likely to resist higher offers from now.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,150/t.

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