India: SteelMint's scrap index rises INR 100/t on improved semis' prices

SteelMint's domestic steel scrap (end-cutting) index rose by INR 100/t d-o-d to INR 37,500/t DAP Mandi Gobindgarh on 18 January, 2024. Prompt demand for semi-finished and finished steel lifted market sentiments today. As demand escalated, mills sourced scrap in considerable volumes.

Semis' market

Steel ingot prices in Mandi increased by INR 200/t to INR 43,000/t at the time of reporting and price normalisation. Meanwhile, prices in other key markets increased by INR 100/t-300/t.

"In Mandi, today's market activity showed improvement compared to the last four days, leading sellers to consider raising prices due to increased buyer activity. Additionally, a majority of mills are optimistic, expecting prices to move positively in the near term," a mill owner told SteelMint.

Raw material price update

In Mandi, the prices for sponge iron (CDRI) stayed unchanged at INR 31,500/t. Concurrently, pig iron (steel grade) prices in Ludhiana witnessed an increase of INR 100/t, reaching INR 39,900/t DAP.

Overview of other markets

On 18 January, 2023, ship-breaking melting scrap prices in Alang, Gujarat, showed no change d-o-d. According to SteelMint's evaluation, HMS (80:20) prices were maintained at INR 34,000/t ex-yard. The moderate buying inquiries for semi-finished and finished steel in the region during the previous trading session influenced scrap suppliers to maintain stable offers today.

The Raipur steel market observed an uptick in prices for semi-finished steel, with trade activities reaching a moderate level in both trading sessions. Billet prices rose by INR 200/t to reach INR 39,750/t, while rebar (Fe500) prices experienced a decrease of INR 100/t, settling at INR 42,900/t. Additionally, steel scrap prices witnessed a slight increase of INR 100/t d-o-d.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread stood at INR 5,000-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $395-$400/t, which equates to approximately INR 35,458/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 33,000/t, stable d-o-d.

In the Indian market, buyers continued to observe from the sidelines due to the disparity between bid and offer prices. The predominant inquiries revolved around materials from Southeast Asia and Australia, given their shorter voyage times and lower risk factors. Indicative offers for shredded scrap from Europe were reported at $414-$418/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 13,350/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.