India: SteelMint's scrap index rises INR 500/t d-o-d on improved steel demand

SteelMint’s domestic steel scrap (end-cutting) index climbed up by INR 500/tonne (t) d-o-d to INR 41,500/t DAP Mandi Gobindgarh on 24 August, 2023. In Mandi, demand for finished steel (rebar) was quite improved compared to the last few days, while the semi-finished steel market witnessed moderate trade activity today. The availability of scrap was quite good, while scrap buying inquiries increased in the region.

Steel ingot prices in Mandi Gobindgarh increased by INR 550/t d-o-d to INR 46,500/t at the time of reporting and price normalisation. Prices in almost all key markets increased in the range of INR 300-600/t. The first half of the trading session was quiet today, while in the second half, the market observed spot trading activities.

Imported scrap market

The market is silent this week as compared to last week due to a sudden price hike. Buying is going on in smaller containers. No bulk bookings have been heard recently.
Offers heard from Europe in shredded are $430/t level, HMS at $410+ in containers for CFR Nhava Sheva.

It looks difficult to comment, but it may be at these levels only, at +/- US$ 5/t, although it may move up by early September. Trade activities are slow, a price drop has been heard in Pakistan due to an uncertain economy,and India soon might see a drop in price. The buyer side is hopeful.

Overview of other markets

Gujarat: Ship-breaking melting scrap prices in Gujarat’s Alang market inched up by INR 300/t d-o-d on 24 Aug’23, as per SteelMint’s assessment. HMS(80:20) prices were assessed at INR 37,100/t exy. Despite limited trade in semis and finished steel, scrap suppliers were receiving moderate buying enquiries, encouraging them to increase prices today.

In Raipur, the finished steel market saw some improvement in trade as rebar prices rose by INR 1,100/t to INR 46,900/t, while semi-finished steel (billet) prices were assessed at INR 43,900/t up, by 1,000/t d-o-d. Sponge iron (PDRI) prices increased by INR 650/t to INR 30,100/t.

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 $404-$410/t, which equates to approximately INR 36,079/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 36,000/t, increased by INR 400/t 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 13,800/t.

To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here

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