India: SteelMint's domestic scrap index drops INR 300/t d-o-d amid low demand for finished steel
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SteelMint's domestic steel scrap (end-cutting) index decreased by INR 300/tonne (t) to INR 43,500/t DAP Mandi Gobindgarh on 19 April,2023. In the Mandi market, low demand for finished steel was the major reason behind the price drop.
Today, steel ingot prices in Mandi decreased by INR 250/t to INR 48,550/t at the time of reporting and price normalisation. Almost all major markets saw a decline in prices by INR 200-300/t today.
The market trend in terms of demand for semi-finished and finished steel was modest today. Owners of mills and scrap traders were concerned over the state of the market.
In Mandi Gobindgarh, the current conversion cost from scrap to steel ingots stood at INR 10,500/t.
Snapshots of other markets
Gujarat: Ship-breaking melting scrap prices in Alang, Gujarat, opened stable d-o-d on 19 April. As per SteelMint's assessment, HMS (80:20) prices stood at INR 39,700/t exy. Limited buying inquiries for semis in yesterday's trading session, and decent buying of scrap at current levels prompted suppliers to keep offers stable.
Chennai: The market witnessed limited demand for semis and finish steel. Prices of semi-finished and finished steel were stable d-o-d. Billets prices stood at INR 49,500/t. Rebar prices were at INR 54,200/t. HMS 80:20 scrap prices were assessed at INR 36,600/t DAP.
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 $433-$438/t, which equates to approximately INR 38,287/t (including freight). Local scrap (HMS 80:20) prices in Mumbai rose to INR 38,500/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 16,250/t.
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