India: SteelMint's domestic scrap index falls by 300/t amid weak steel demand
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SteelMint's domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) d-o-d to INR 42,800/t DAP Mandi Gobindgarh on 19 June 2023. Prices continued to decline amid limited buying enquiries. Today, the semi-finished and finished steel markets in the region witnessed limited trade.
Steel ingot prices in Mandi dipped by INR 300/t d-o-d to INR 47,800/t at the time of reporting and price normalisation as buyers were silent amid dull market sentiments. Prices in almost all key markets decreased by up to INR 200-300/t. However, ingot makers are hoping that this is the final drop in the ingot prices.
Imported scrap market trends
The imported scrap market continued to move at a slow pace. Some small quantities were booked over the weekend. Meanwhile, buyers are looking for further price corrections. Some steel producers are looking for the next round of Turkish deals for a better market outlook.
Overview of other markets
On 19 June, ship-breaking melting scrap prices in Alang, Gujarat, were steady d-o-d. Prices of HMS (80:20) were estimated at INR 39,000/t exy. Suppliers kept their offers consistent due to stable semi-finished steel prices and mild buying inquiries for scrap.
In Raipur, the market witnessed limited trade activity in semis and finished steel. Billet prices in Raipur stood at INR 43,850/t down by INR 250/t, while rebars were assessed at INR 47,600/t fell up to INR 100/t d-o-d.
Mumbai: A sluggish market was witnessed today in terms of trading activities, specifically in finished steel, due to the decline in steel billet prices in the northern and central regions. However, in the Mumbai market, sellers were trying to hold the semis' prices on the upside, enocuraged by sales to neighbouring locations. However, HMS 80:20 prices hovered at INR 37,000/t DAP Mumbai -- which was lower compared to some other markets.
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 $414-$417/t, which equates to approximately INR 36,374/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,000/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 16,100/t.
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