India: SteelMint's scrap index up INR 200/t d-o-d as trade activity rises

On 15 November, 2023, SteelMint's domestic steel scrap (end-cutting) index increased by INR 200/t d-o-d reaching INR 38,300/t DAP Mandi Gobindgarh. In the region, mills are actively sourcing domestic scrap, as imported scrap is not considered viable at the moment. However, the availability of scrap in Mandi Gobindgarh remains low.

Raw material prices

Prices of sponge iron (CDRI) decreased by INR 200/t, settling at INR 33,300/t. In Ludhiana, pig iron (steel grade) prices were recorded at INR 39,900/t DAP, reflecting a decline of INR 100/t d-o-d.

Steel market

Steel ingot prices in Mandi Gobindgarh increased by INR 300/t, reaching INR 44,000/t. Similarly, prices increased in the range of INR 100-300/t in other key markets. Semi-finished steel demand in the region has improved slightly over the past few days, leading to some active trading today. However, finished steel movement remains low, with prices decreasing by INR 100/t to INR 48,300/t d-o-d.

Overview of other markets

Today, the steel market in Raipur saw average trade activity, as most mills operated with a reduced labour force due to the ongoing festive week and upcoming elections in the region. Billet prices stood at INR 41,400/t, up INR 150/t, while rebar prices increased by INR 100/t to INR 44,600/t d-o-d.

The Alang ship-breaking market in Gujarat is currently closed due to the Diwali festive week.

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 $384-$392/t, which equates to approximately INR 34,937/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 33,700/t, up by INR 200/t d-o-d.

In India, despite the ongoing rise in imported scrap offers from Europe, demand from downstream sectors has remained low. This is attributed to the gap between buyers' bids and the asking prices set by sellers. In addition, overall trade dynamics was affected by the holiday mood, further contributing to sluggish market sentiment.

Offers for shredded scrap were assessed at $410-$415/t CFR Nhava Sheva, while workable levels, as per buyers, stood at around $405-$410/t CFR. HMS (80:20) scrap originating from Europe were evaluated at $390-$395/t CFR.

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

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