India: SteelMint's scrap index remains stable in moderate trade

SteelMint's domestic steel scrap (end-cutting) index remained stable d-o-d at INR 40,500/t DAP Mandi Gobindgarh on 14 August, 2023. Moderate trading activity was seen in the Mandi market today but mills as well as scrap traders are expecting a strong rebound in prices in the current week. Meanwhile, availability of steel scrap was good in the market today.

In Mandi, the current conversion from scrap to ingot is INR 10,500/t.

Steel ingot prices in Mandi Gobindgarh rose slightly by INR 100/t to INR 45,500/t at the time of reporting and price normalisation. Prices in almost all key markets increased in the range of INR 100/t. In Mandi, the first half of the trading session was quiet today, but the market saw some trade activity in semi-finished steel in the second half.

Imported scrap market

Offers for imported scrap into India are at $425/t or higher, but there is a lack of interest at this level, with bids mainly emerging around at around $410-412/t for the Indian market, primarily due to limited buying enthusiasm.

The demand for scrap is robust across various regions, and the recent bookings from Turkiye have contributed to the price momentum. Both the Turkish and broader Asian markets have shown an upward trend.

While suppliers have put forward higher offers, buyers are not yet prepared to commit. Some bookings are expected to happen this week at negotiated prices.

Demand remains high, and there is a shortage of materials due to restrictions on many origins. This situation is prompting a gap between bids and offers.

In the past 2-3 days, market participants have experienced a boost in demand, leading to an increased bid-offer gap.

Overview of other markets

Gujarat: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 14 August. HMS (80:20) prices stood at INR 36,000/t exy. Trade inquiries for semi-finished and finished steel remained moderate in yesterday's trading session. Scrap offers were supported by active demand as material availability remains a concern.

The Chennai market saw limited demand in semi-finished and finished steel. Billet prices were assessed at INR 44,500/t -- stable d-o-d, while rebar prices stood at INR 48,500/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 are at around $392-$405/t, which equates to approximately INR 35,885/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 13,450/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.

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.