SteelMint's ferrous scrap index stays neutral amid moderate trade in semis

SteelMint's domestic steel scrap (end-cutting) index in Mandi Gobindgarh remained steady at INR 38,600/tonne (t) on 02 November, 2023. Both trading sessions proved favorable for scrap traders, with mills persisting in their acquisition of domestic steel scrap, even in the face of an ongoing shortage in the major market.

Sponge iron (CDRI) prices remained stable, standing at INR 34,000/t d-o-d.

Steel market

In Mandi Gobindgarh, the prices of steel ingots rose by INR 200/t, reaching INR 44,500/t. Similarly, other significant markets also witnessed price increases, ranging from INR 100/t to INR 200/t.

While there was a minor uptick in demand for semi-finished steel in Mandi Gobindgarh, the market's overall pace remained slow. This is due to a decrease in finished steel prices by approximately INR 200/t to INR 49,000/t in today's final trading session.

Overview of other markets

In Gujarat's Alang market, ship-breaking melting scrap prices dropped by INR 400/t on November 2, 2023, according to SteelMint's report. The assessment placed the prices of HMS (80:20) at INR 36,300/t ex-yard. This decline was influenced by the decrease in semi-finished steel prices the day before and reduced trading activity for scrap at current price levels, leading suppliers to adjust their offers for the day.

Raipur: Semi-finished steel (ingot) prices in Raipur increased by INR 100/t to INR 41,450, while rebar prices declined by INR 100/t to INR 44,800/t. The market exhibited a moderate level of trading activity, with no major trade deals reported in the region, indicating a slow market pace.

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 $378-$385/t, which equates to approximately INR 34,242/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 34,000/t. They were unchanged on d-o-d basis.

Today in India, although there were limited inquiries for imported scrap, European and US sellers kept their offers firm. Notably, there was a noticeable gap between buyers' bids and sellers' asking prices, leading to ongoing negotiations. Shredded scrap offers from Europe were assessed at $405/t CFR Nhava Sheva, while buyers' bids were in the range of approximately $400/t CFR.

HMS (80:20) scraps originating from Europe were priced at $385/t CFR, while South African (hand-loaded material) were at $385-$390/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 13,850/t.

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