India: SteelMint's scrap index rises INR 100/t d-o-d on supply concerns

SteelMint's domestic steel scrap (end-cutting) index rose by INR 100/t d-o-d to INR 40,800/t DAP Mandi Gobindgarh on 11 August, 2023. Shortage of ferrous scrap persisted in the market, while very slow trade activity was seen.

Semi-finished steel market

Steel ingot prices in Mandi edged up by INR 100/t to INR 45,800/t at the time of reporting and price normalisation. Meanwhile, prices in other key markets increased in the range of INR 100-200/t. The market witnessed limited trading in semi-finished and finished steel, as small mills lowered their production levels.

Imported scrap market

India's imported scrap market continued to witness an uptrend in prices. Buyers are showing less interest as the domestic market is dull. On the other hand, the semi-finished and finished markets have seen no major transactions.

Imported scrap offers are now at $420-425/t CFR. However, deals remained absent today.

Overview of other markets

Ship-breaking melting scrap prices in Gujarat's Alang market decreased further by INR 500/t d-o-d on 11 August. HMS (80:20) prices were assessed at INR 36,200/t exy. Semi-finished steel prices fell in yesterday's trading session in the region and limited trading activities at current price levels for scrap resulted in suppliers reducing their offers today.

Mumbai: Limited sales were recorded in the spot rebar market compared to yesterday owing to fluctuations in steel billet prices in north India. HMS (80:20) prices are hovering at INR 35,000/t DAP. The conversion spread from scrap to billets stands at around INR 8,500/t.

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-$400/t, which equates to approximately INR 35,329/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 13,350/t.

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