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

SteelMint's index for domestic steel scrap (end-cutting) remained stable on 27 December, 2023 at INR 37,100/t DAP 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 ingot prices in Mandi Gobindgarh remained stable at INR 42,600/t at the time of reporting and price normalisation. Prices in the majority of key markets increased in the range of INR 100/t to INR 300/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.

Overview of other markets

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 27 December, 2023. As per SteelMint's assessment, HMS (80:20) prices stood at INR 34,900/t exy. Moderate buying inquiries were observed in the northern region in the latter part of yesterday's trading session for semi-finished and finished steel, encouraging scrap suppliers to maintain stable offers today.

Chennai: During today's trading session, the Chennai market in South India experienced limited trade activities in finished steel. The prices of semi-finished, finished steel and HMS 80:20 remained unchanged, assessed at INR 43,000/t, INR 48,000/t and INR 32,800/t respectively. According to market sources, all major mills in the region are operating at only 50-60% of their total capacity due to a sluggish demand for finished steel material.

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 $386-$390/t, which equates to approximately INR 34,600/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 33,700/t, inched up by INR 200/t.

In India, no firm offers or bids were heard today for imported scrap as suppliers/yard owners are on Christmas and New years break.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,050/t.

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