India: SteelMint's ferrous scrap index stable amid soft steel demand
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SteelMint's domestic steel scrap (end-cutting) index remained stable d-o-d at INR 41,300/t DAP Mandi Gobindgarh on 4 July, 2023. Limited trade inquiries continued in the market, while buyers remained silent today amid need-based deals heard in the market.
In the Mandi market, finding scrap at reasonable prices has become tough for traders who are already confronted with minimal profit margins.
Semi-finished steel market trends
Steel ingot prices in Mandi slightly up by INR 100/t d-o-d to INR 46,400/t at the time of reporting and price normalisation. Meanwhile, prices in other key markets decreased by up to INR 100/t-200/t. Modest trade in semi-finished and finished steel was seen in the market. Major mills in Mandi raised their usage of sponge iron.
Imported scrap market
The Indian imported scrap market is expecting a round of bookings this week, as sales have been heard at $412-$415/t levels. As per market participants, shredded scrap prices are being heard at $420/t for India and Pakistan.
Overview of other markets
On 4 July, ship-breaking melting scrap prices in Gujarat's Alang market fell by INR 300/t d-o-d. According to SteelMint assesement, HMS (80:20) prices were at INR 37,500/t exy. Suppliers reduced today's offers as semi-finished steel prices fell and trading activity for scrap slowed down.
Jalna: During today's session, the market witnessed slow trading activities in semis and finished steel. Market participants are anticipating further downward price correction, considering the monsoon impact. In the Jalna market today, prices of semis dropped by INR 300/t to INR 43,700/t, while finished steel prices edged down by INR 200/t to INR 49,500/t. On the other hand, HMS 80:20 prices remained stable at INR 35,300/t.
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 $398-$400/t, which equates to approximately INR 35,003/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 35,000/t, falling by up to INR 200/t 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 15,650/t.
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