India: SteelMint's ferrous scrap index rises by INR 100/t amid moderate demand
SteelMint’s domestic steel scrap (end-cutting) index rose by INR 100/tonne (t) d-o-d to INR 37,600/t DAP Mandi Gobindgarh on 19 January, 2024. In the region, si...
SteelMint's domestic steel scrap (end-cutting) index rose by INR 100/tonne (t) d-o-d to INR 37,600/t DAP Mandi Gobindgarh on 19 January, 2024. In the region, since the last trading session, steelmakers have been optimistic about a positive movement in semi-finished and finished prices. However, today's market activity, spanning both halves of the trading session, remained at a moderate level. Mills are actively acquiring domestic steel scrap, as the option of importing is currently not considered viable.
Steel market
Steel ingot prices in Mandi increased by INR 100/t to INR 43,100/t at the time of reporting and price normalisation. Meanwhile, prices in other key markets increased by INR 100-200/t. Moderate demand was observed in the major markets as mills were actively engaged today. This comes after a 3-4-day lull.
Raw material price update
In Mandi, prices for sponge iron (CDRI) remained constant at INR 31,500/t. Meanwhile, pig iron (steel grade) prices in Ludhiana experienced a decline of INR 100/t, settling at INR 39,800/t DAP.
Overview of other markets
Ship-breaking melting scrap prices in Gujarat's Alang market inched up by INR 100/t d-o-d on 19 January. As per SteelMint's assessment, HMS (80:20) prices were assessed at INR 34,100/t exy. Semi-finished steel prices increased by INR 100-200/t in the region in yesterday's trading session, coupled with moderate buying interest for scrap which propelled suppliers to hike offers, sources informed.
The Jalna steel market observed moderate trade activities in finished steel in today's trading session. Semi-finished steel prices showed a slight increase by INR 400/t, reaching INR 42,800/t, whereas rebar prices rose by INR 500/t to INR 48,200/t. In contrast, HMS 80:20 prices remained stable and were assessed at INR 32,500/t. Today's demand for finished steel decreased compared to yesterday's trading session.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread stood at INR 5,000-5,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $394-$397/t, which equates to approximately INR 35,182/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 33,000/t, stable d-o-d.
Buyers in India continued to stay on the sidelines, influenced by the gap between bids and offers. Shredded scrap was offered at $410-$415/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,300/t.
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