India: SteelMint's scrap index declines by INR 100/t d-o-d amid a muted market
SteelMint’s domestic steel scrap (end-cutting) index recorded a decline of INR 100/t to INR 37,000/t DAP Mandi Gobindgarh on 28 December, 2023. In the region, t...
SteelMint's domestic steel scrap (end-cutting) index recorded a decline of INR 100/t to INR 37,000/t DAP Mandi Gobindgarh on 28 December, 2023. In the region, the scrap market experienced limited trading, with only need-based buying done by the mill owners.
Steel ingot prices in Mandi Gobindgarh inched down by INR 100/t, to INR 42,500/t at the time of price normalisation. Meanwhile, prices in other key markets decreased by up to INR 100-400/t. The present situation in the Mandi Gobindgarh steel market is defined by a sluggish trading pace, as buyers remained subdued and unresponsive during the today's trading sessions.
Overview of other markets
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 28 Dec'23. As per SteelMint's assessment, HMS (80:20) prices stood at INR 34,900/t exy. Buying inquiries for semi-finished and finished steel remained moderate in the yesterday's trading session in the region, which prompted scrap suppliers to keep offers stable today.
Jalna: In today's trading session, the Jalna market experienced limited demand for semi-finished and finished steel. Rebar and scrap prices declined by INR 500/t to INR 47,500/t and INR 33,000/t, respectively, while billet prices remained stable and assessed at INR 42,200/t. Mill owners continued to decrease scrap prices to sustain the conversion cost. However, due to lower offers, scrap supply has also been interrupted.
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 $386-$390/t, which equates to approximately INR 34,600/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 33,500/t, fell by INR 200/t.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,000/t.
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