India: SteelMint's ferrous scrap index rises INR 200/t on 14 Oct'23
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SteelMint's domestic steel scrap (end-cutting) index rose by INR 200/t d-o-d to INR 39,200/t DAP Mandi Gobindgarh on 14 October, 2023. Demand for semi-finished and finished steel remained limited compared to yesterday, while moderate trade enquiries for domestic scrap were heard.
Semi-finished steel market
Today, steel ingot prices in Mandi remained stable at INR 45,200/t at the time of reporting and price normalisation. Meanwhile, prices in other key markets rose by INR 200/t. The market witnessed slow trade in semi-finished and finished steel.
Steel market: Weekly trend
In comparison with the past week, the Mandi Gobindgarh market witnessed a substantial dip in prices for semi-finished and finished steel, driven by limited demand. Furthermore, enduring liquidity concerns have been consistently stymieing the region's trade momentum.
According to experts, the market is expected to see a slight uptick soon, as the current stagnant demand is anticipated to rise.
Weekly price movements
Ingot prices in Mandi Gobindgarh fell by INR 1,100/t. End-cutting scrap prices dropped INR 1,000/t. Sponge iron (CDRI) prices decreased by INR 1,000/t, while rebar prices moved down by INR 1,200/t w-o-w.
Weekly imported scrap market
Demand for imported scrap in India stayed at a moderate level during the week. Only a few deals were reported as there were notable differences between the price buyers were willing to pay and what sellers were asking.
On a weekly basis, shredded scrap offers from Europe edged up marginally by $2/t to $414/t CFR Nhava Sheva, although buyers were bidding in the range of $405-$410/t CFR. HMS (80:20) scrap from Europe closed at $395/t CFR on 13 October, witnessing a drop $3/t w-o-w across western and southern India amid weak buying sentiments.
Overview of other markets
On 14 October, Alang's ship-breaking melting scrap prices remained unchanged d-o-d, with HMS (80:20) prices at INR 37,800/t exy. Given moderate buying enquiries for semi-finished and finished steel yesterday, there was no incentive for scrap suppliers to adjust their prices.
The Raipur steel market saw improved demand for semi-finished and finished steel. Billet prices stood at INR 43,150/t, up by INR 550/t, while rebar prices increased by INR 800/t to INR 46,500/t today.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread stood at INR 5,500-6,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $392-$395/t, which equates to approximately INR 35,152/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 35,500/t, stable d-o-d.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 13,950/t.
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