India: SteelMint's scrap index rises by INR 500/t as steel prices rebound
SteelMint’s India domestic steel scrap (end-cutting) index has finally showed an upward movement, climbing by INR 500/t d-o-d to INR 39,100/t DAP Mandi Gobindga...
SteelMint's India domestic steel scrap (end-cutting) index has finally showed an upward movement, climbing by INR 500/t d-o-d to INR 39,100/t DAP Mandi Gobindgarh on 28 July, 2023. The market witnessed moderate trading activity for scrap, while the use of sponge iron as a raw material has been increasing in the region. As per SteelMint's assessment, prices of sponge iron (CDRI) were assessed at INR 31,200/t DAP.
In Mandi, steel ingot prices recovered by INR 600/t to INR 44,200/t at the time of reporting and price normalisation. Prices in almost all the key markets jumped by up to INR 900/t. The market saw improvement in trade activities compared to the previous couple of days.
Imported scrap market
Imported ferrous scrap prices for UK-origin shredded are heard to be quoted high at $412-415/t CFR NhavaSheva/Mundra. Meanwhile, few traders are offering at the $405-408 level as a form of distressed selling.
A deal for 1,000 t of Europe-origin shredded was heard to be concluded at $405/t CFR Chennai, yet sellers are in a bullish mode after frequent deals being done by Turkish mills recently.
SteelMint Assessment for Europe origin shredded stood at $410/t increased by $4/t d-o-d.
Overview of other markets
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, opened stable d-o-d today with HMS (80:20) being offered at INR 36,300/t exy. Steady semi-finished steel prices in Bhavnagar and moderate buying inquiries for scrap in the region prompted suppliers to keep offers stable.
Chennai: Prices for semis, finished steel and HMS 80:20 remained stable at INR 42,800/t, INR 47,500/t and INR 31,700/t respectively. Demand of finished steel is still limited in the market.
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 $382-$388/t, which equates to approximately INR 34,100/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 33,600/t.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 13,800/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.