India: SteelMint scrap index dips by INR 100/t on limited demand for semis,finished
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SteelMint's domestic steel scrap (end-cutting) index fell by INR 100/tonne (t) to INR 42,600/t DAP Mandi Gobindgarh on 25 April, 2023. Limited demand for semi-finished and finished steel emerged as the primary cause of the price decline in Mandi.
Today, steel ingot prices in Mandi were stable d-o-d at INR 47,800/t at the time of reporting and price normalisation. Prices in almost all key markets fell by up to INR 200-300/t.
The pricing of other raw materials like scrap and sponge were determined by the end-user's limited demand for finished steel. The local market has a significant amount of scrap, but a liquidity issue is restricting trading.
In Mandi Gobindgarh, the current conversion cost from scrap to ingot stood at INR 10,600/t.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap prices in Alang, Gujarat, came down further by INR 500/t d-o-d on 25 April. HMS (80:20) prices opened at INR 38,700/t exy. A drop in semi-finished steel prices in all the key markets in yesterday's session and limited trade activities in the scrap market dragged down prices.
Jalna: The mills here dropped prices for TMT bars by about INR 1,000/t, which also reflected the scrap purchase trend. Very low demand led to this scenario. Billet prices in Jalna stood at INR 47,400/t fell by INR 300/t d-o-d.
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 $430-$433/t, which equates to approximately INR 37,674/t (including freight). Local scrap (HMS 80:20) prices in Mumbai fell by INR 200/t to INR 37,800/t DAP.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 16,200/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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