India: SteelMint's scrap index remains range-bound on moderate steel demand

SteelMint's domestic steel scrap (end-cutting) index remained range-bound, dipping slightly by INR 100/t to INR 41,000/t DAP Mandi Gobindgarh on 21 August, 2023. In Mandi, trade was moderate as scrap movement improved from yesterday's trading session. Mills are continuing to procure scrap in average-plus volumes. However, liquidity issues persist in the market.

Steel ingot prices in Mandi Gobindgarh fell by INR 200/t to INR 46,000/t at the time of reporting and price normalisation. Prices in almost all key markets decreased in the range of INR 200-500/t. Today's trading session in Mandi started off slowly, but the second half witnessed some moderate trade queries in semi-finished steel.

Imported scrap market

The market heard nothing significant and bearish sentiments were noticed. Offers for shredded were heard at around $430-$435 and Western Africa HMS offers were at $405-$410 for Chennai. Demand was better in the last three days. Yet, not many deals or offers have been made. The market is anticipating some deals this week at a negotiable price range. Supplier-side sentiment is bullish due to continuous deals originating from Asian and Turkish buyers.

Overview of other markets

Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 300/t d-o-d on 21 August 2023, as per SteelMint's assessment. HMS (80:20) prices were assessed at INR 37,000/t exy. Lack of trades in semi-finished and finished steel materials in the last trading session, coupled with limited buying inquiries for scrap, forced suppliers to reduce their offers, today.

The Hyderabad market remained stable despite fall in other markets. Buyers opted to wait and watch and expect a further fall in steel prices. However, some trade can be seen in semi-finished steel (billets). On the other hand, the finished steel market (TMT) remains untouched.

Billet prices assessed at INR 44,000/t stable d-o-d, while rebar prices stood at INR 48,000/t exw.

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 $400-$410/t, which equates to approximately INR 36,289/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 36,000/t, stable 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 13,400/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.