India: SteelMint's domestic scrap index falls by INR 400/t amid limited trade inquiries
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SteelMint's domestic steel scrap (end-cutting) index decreased by INR 400/t d-o-d to INR 42,300/t DAP Mandi Gobindgarh on May 23, 2023. The Mandi market saw limited trade activity as demand for semis and finished steel was limited.
Today, steel ingot prices in Mandi dropped by INR 300/t d-o-d to INR 47,400/t at the time of reporting and price normalisation. Prices in almost all key markets fell by INR 200-300/t. The market witnessed limited trade activity.
Current market trends
Today, only purchases based on need continued to be made for semis and finished steel.
"In Mandi, only limited transactions are being made, primarily because scrap traders do not want to close transactions at the current pricing," a scrap trader informed SteelMint.
Imported scrap market
Imported ferrous scrap prices of various grades, like shredded and HMS, remained flat today due to a limited number of inquiries.
However, observing the global dynamics, participants expect some active deals to re-ignite the market this week.
Shredded scrap offers of EU origin stood at $440/t, while the same grade from the US was assessed at $435/t.
Overview of other markets
Ship-breaking melting scrap prices in Alang, Gujarat, edged up by INR 200/t d-o-d on 23 May. As per SteelMint's assessment, HMS (80:20) prices are at INR 38,800/t ex-yard. Moderate trading in semi-finished steel in the western region, coupled with healthy buying for scrap from Bhavnagar-based IF steel mills, prompted scrap suppliers to hike offers.
Raipur: The market saw minimal trade activity in semis and finished steel as inquiries remained low. In Raipur, PDRI sponge iron prices declined by up to INR 300/t to INR 28,300/t.
Price highlights
End-cutting-billets spread: In Mandi, the spread between end-cutting scrap and billets stood at INR 5,000-5,500/t.
Domestic/imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at $420-$425/t, which equates to approximately INR 37,421/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,500/t DAP.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 15,300/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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