India: SteelMint's scrap index rises INR 300/t d-o-d

SteelMint's domestic steel scrap (end-cutting) index moved up by INR 300/t d-o-d to INR 42,400/t DAP Mandi Gobindgarh on 31 August, 2023. In Mandi, demand for semi-finished and finished steel was moderate today, as active buying from the mills was not seen. Sponge iron (PDRI) prices moved up by INR 100/t to INR 36,100/t d-o-d.

Semi-finished steel market

Steel ingot prices in Mandi Gobindgarh rose by INR 300/t d-o-d to INR 47,700/t at the time of reporting and price normalisation. Prices in almost all key markets increased in the range of INR 200-300/t. Today, active buyers were absent in the semi-finished steel market. No major improvement was seen in the market, but mills are hoping for a price hike in the coming week as raw material prices are on the ascendant pushing steel prices higher. Steel ingots prices rose by around INR 3,200/t m-o-m.

Imported scrap market

Shredded scrap offers fluctuated between $430-$435; however, a few sellers are keeping their offers high to test the market.

HMS deals increased in India compared to shredded because of ease of availability and cost effectiveness, especially from West Africa and the Middle East.

A few containers have reached Kandla or Mundra from local mills, while consumption and the domestic scrap market seem to fluctuate in Gujarat.

UK HMS (80:20) offers are at $415-$420/t, with 3-4% impurity for Kandla.

Rebar and steel prices have increased in recent days.

Australian-origin 500 t of HMS (80:20) was recently booked at $420/t CFR Chennai, and bulk offers in HMS (80:20) are being heard at $430/t for CFR Kandla.

Overview of other markets

Ship-breaking melting scrap prices in Alang, Gujarat, continued to remain steady d-o-d on 31 Aug'23. As per SteelMint's assessment, HMS (80:20) prices are at INR 38,200/t exy. Buying enquiries for semi-finished and finished steel remained moderate in yesterday's trading session, prompting scrap suppliers to keep offers stable today. HMS (80:20) prices have increased by INR 1,400/t m-o-m.

Durgapur: The semis market witnessed an uptrend due to bullish sentiments in the eastern region. Sellers raised offers on account of good demand from the buyersm as trades were moderate to active across regions. Participants are expecting prices to remain to remain in positive terrain as raw material prices have increased, SteelMint notes.

In Durgapur, billet prices assessed at INR 44,850/t up by INR 100/t, while rebar prices stood at INR 48,000/t stable 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/imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $410-$420/t, which equates to approximately INR 36,924/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 36,500/t, unchanged d-o-d.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 13,600/t.

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