India: BigMint's domestic steel scrap index declines by INR 200/t amid mixed market trend
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On 31 January, 2024, BigMint's domestic steel scrap index (end-cutting) in Mandi Gobindgarh saw a decrease of INR 200/t, reaching INR 37,400/t on a delivered-at-plant (DAP) basis. Trade activity in the Mandi steel market remained moderate, with mills maintaining a decent pace in the procurement of scrap.
Semis' market
During the reporting and normalisation process, steel ingot prices in Mandi experienced a decline of INR 100/t, settling at INR 42,800/t. Simultaneously, prices in other major markets also witnessed a decrease in the range of INR 100 to INR 200/tonne (t). The latter part of the trading session in the region observed moderate trade activity. Notably, bulk buying was absent from the Mandi steel market during this period.
"In the Mandi steel market, there has been a lack of bulk buying in the past few weeks as buyers adopted a wait-and-watch strategy amid a subdued market situation overall from last couple of day market saw moderate demand," informed a trader to BigMint.
Raw materials price update
In Mandi, the price of sponge iron (CDRI) saw a decrease of INR 100/t, settling at INR 31,400/t, at the same time, pig iron (steel grade) prices in Ludhiana remained unchanged, reaching INR 39,500/t on a delivered-at-plant (DAP) basis.
Overview of other markets
Ship-breaking melting scrap prices in Gujarat's Alang market inched up by INR 300/t d-o-d on 31 Jan'24. As per BigMint's assessment, HMS (80:20) prices were assessed at INR 34,500/t exy. In the recent trading session, semi-finished steel prices in the region saw an increase of INR 100-200/t. The uptick was driven by moderate buying interest for scrap, prompting suppliers to raise their offers, as reported by industry sources.
In the Jalna market, situated in western India, semi-finished steel prices experienced a slight increase of INR 100/t, reaching INR 42,400/t, while rebar prices remained steady at INR 48,200/t ex-works. Conversely, HMS 80:20 prices saw a rise of INR 300, reaching INR 33,000/t. Trade movements in finished steel were restricted in today's trading session.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic Vs imported scrap market: Imported melting scrap prices at Nhava Sheva Port were at around $388-$393/t, which equates to approximately INR 34,838/t(including freight),while local scrap-HMS (80:20)-prices in Mumbai stood at INR 33,000/t stable d-o-d.
In the Indian market, the import of scrap has remained subdued due to a persistent gap between offers and bids, rendering imports unfeasible at the present time. Indicative offers for shredded scrap from Europe were evaluated at $410-415/t CFR Nhava Sheva.
An official from a steel mill mentioned, "As there is no demand for TMT in the southern region, we do not anticipate a specific positive trend in imported scrap prices."
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,050/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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