SteelMint's ferrous scrap prices maintain stability d-o-d amid moderate steel demand

On 8 November, 2023, SteelMint's domestic steel scrap (end-cutting) index stayed unchanged d-o-d, holding at INR 38,000/t DAP Mandi Gobindgarh. The scrap market is demonstrating moderate trade activity, with a predominant focus on mills procuring domestic scrap. The Mandi scrap market has seen decent trade as mills are currently concentrating on domestic steel scrap due to the infeasibility of imported scrap at present.

The prices of sponge iron (CDRI) in Mandi Gobindgarh remained constant, staying at INR 33,300/t. At the same time, steel grade pig iron prices in Ludhiana were evaluated at INR 39,500/t, showing no change today.

Steel ingot prices in Mandi Gobindgarh remained constant d-o-d, settling at INR 43,700/t at the time of reporting and price normalization. In contrast, prices in most major markets saw increases in the range of INR 100/t to INR 300/t. Trade activity in the semi-finished and finished steel markets in Mandi Gobindgarh was moderate, and the prices for semi-finished steel and scrap remained steady for the day. Additionally, a shortage of scrap materials persisted in the primary market.

Overview of other markets

Ship breaking melting scrap prices in Alang, Gujarat, edged up by INR 300/t d-o-d on 8 November, 2023. As per SteelMint's assessment, HMS (80:20) prices opened at INR 36,300/t exy. The rise in semi-finished steel prices in north India and moderate scrap buying by induction furnace mills in the region prompted suppliers to raise their offers today.

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 $382-$387/t, which equates to approximately INR 34,433/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 33,500/t, down by INR 500/t d-o-d.

The imported ferrous scrap market in India was rather slow today owing to weak buying interest amid ongoing festive mood of participants. Furthermore, sellers maintained firm offers that buyers found unviable at the moment, resulting in no significant activities being reported. Indicative offers for shredded scrap from Europe were evaluated in the range of $405-$410/t CFR Nhava Sheva, while HMS (80:20) stood 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 14,000/t.

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