India: SteelMint's scrap index remains unchanged d-o-d amid limited trade in semis

As of 18 December, 2023, SteelMint's index for domestic steel scrap (end-cutting) remained constant d-o-d at INR 38,800/t (DAP) in Mandi Gobindgarh. The scrap market is experiencing a moderate level of trade, with mills acquiring domestic scrap at reasonable levels. Additionally, mills in Mandi Gobindgarh foresee a potential increase in steel prices for the ongoing week.

Steel market

Steel ingot prices in Mandi Gobindgarh remained stable at INR 44,300/t at the time of reporting and price normalisation. Prices in the majority of key markets remained stable today. There was limited level of trade activity observed in the semi-finished steel markets in Mandi Gobindgarh. Nevertheless, the movement of finished steel showed a moderate pace, and there was a slight increase of around INR 100/t in the prices of rebar (Fe500), reaching INR 48,700/t.

Raw material prices

The prices of sponge iron (CDRI) saw a decrease of INR 200/t, settling at INR 32,600/t. Meanwhile, pig iron (steel grade) prices in Ludhiana remained unchanged d-o-d at INR 39,600/t.

Overview of other markets

On 18 December, 2023, the ship-breaking melting scrap market in Alang, Gujarat, witnessed stability with no significant changes d-o-d. SteelMint's analysis reported HMS (80:20) prices at INR 35,500/t ex-yard. The buying interest for semi-finished and finished steel remained at a moderate level during the last trading session, prompting scrap suppliers to keep their offers unchanged today.

During today's trading session, the Chennai market in South India experienced limited trade activities in finished steel. The prices of semi-finished steel and HMS 80:20 remained unchanged, assessed at INR 44,500/t and INR 33,300/t respectively, whereas rebar prices declined by INR 200/t to INR 49,000/t. Market sources indicated that nearly all mills have resumed operations after the cyclone, securing sufficient quantities of domestic scrap from suppliers. However, challenges persisted in the supply of imported scrap from the port to the mills' yards due to road damage caused by the cyclone. Additionally, availability of vehicles and drivers in the port area remained insufficient.

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 $394-$398/t, which equates to approximately INR 35,297/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 34,000/t, stable d-o-d.

In India, the demand for imported scrap continued to remain subdued, primarily influenced by the price gap and the presence of previously booked materials. There were indicative offers for shredded scrap from Europe at approximately $420/t CFR Nhava Sheva.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,200/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.