India: SteelMint's scrap index remains stable amid decent supply - 20 Dec

On 20 December, 2023, SteelMint's domestic steel scrap (end-cutting) index stayed unchanged d-o-d at INR 38,300/t DAP Mandi Gobindgarh. The scrap market is witnessing moderate trade, with mills procuring domestic scrap. Additionally, there has been decent arrival of domestic scrap in the region.

Steel market

Steel ingot prices in Mandi Gobindgarh remained stable at INR 43,800/t at the time of reporting and price normalisation. Prices in the majority of key markets decreased in the range of INR 200/t to INR 500/t. Moderate trade was observed in the semi-finished steel markets in Mandi Gobindgarh. This was driven by some spot demand noted in the major markets.

Raw material prices

Sponge iron (CDRI) prices remained unchanged day-on-day at INR 32,500/t. Meanwhile, pig iron (steel grade) prices in Ludhiana saw an uptick, rising by INR 100/t to INR 39,600/t DAP.

Overview of other markets

On 20 December, 2023, Gujarat's Alang market saw a decline of INR 300/t in ship-breaking melting scrap prices. The assessed prices for HMS (80:20) reached INR 35,000/t ex-yard. In the previous trading session, semi-finished steel prices in the region witnessed a drop of approximately INR 500/t to 600/t. Suppliers, facing reduced demand for scrap, responded by lowering their offers in today's market.

In Mumbai's IF market, rebar (Fe 500) prices declined by INR 400/t d-o-d, reaching INR 48,500/t ex-works. The finished steel market witnessed low-key trading activities as buyers adopted a cautious stance, waiting and watching amidst uncertainty and weak market sentiments. The current price for scrap (HMS 80:20) is at INR 34,000/t DAP, with the conversion spread from scrap to billet hovering at around INR 8,000/t.

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 $390-$393/t, which equates to approximately INR 34,898/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 34,000/t, stable d-o-d.

Today in India, there were no firm offers or bids due to a lack of buying interest. However, last heard indicative offers for shredded scrap in containers remained at $414-418/t CFR west coast from Europe and the US.

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.

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.