India: SteelMint's scrap index drops by INR 200/t on limited steel demand
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SteelMint's domestic steel scrap (end-cutting) index decreased by INR 200/t d-o-d to INR 42,200/t DAP Mandi Gobindgarh on 31 May, 2023. The Mandi market saw limited trade activity as demand for semis and finished steel was limited.
Semi's market trend
Today, steel ingot prices in Mandi dropped by INR 100/t d-o-d to INR 47,300/t at the time of reporting and price normalisation. Prices in almost all key markets fell by INR 100-200/t. The market witnessed limited trade inquiries.
"The most important factor influencing price decline is selling pressure, because, the market has witnessed modest trade in semi-finished steel," an ingots maker informed SteelMint.
Mandi scrap market
Today's scrap market was quiet, with only minimal trading activity taking place. Most scrap traders are not interested in dealing in lower scrap prices as they are looking for a better market tomorrow.
Imported scrap
Indian steel producers are interested in booking imported scrap. However, they are waiting for a price correction. Some buyers are optimistic that prices will fall before the monsoon, yet imported scrap prices in market leader Turkiye remained high. On the other hand, buyers are hopeful and are waiting for their containers to get cleared from Customs which are stuck at the port.
Shredded scrap offers of EU-origin stood at $435/t, while the same grade from the US was assessed at $430/t.
Overview of other markets
Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 31 May, 2023. As per SteelMint's assessment, HMS (80:20) prices stood at INR 38,300/t exy. Even as buying inquiries for semi-finished and finished steel were limited in the last trading day, scrap offers were supported by good demand amid supply concerns.
In Mumbai, scrap prices fluctuated through out the month by INR 300-800/t. Short supply of material and labour issues owing to extreme heat are some major factors which kept scrap prices tight despite lack of demand in finished steel in Mumbai as well as in other regions of the country.
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 $418-$422/t, which equates to approximately INR 37,099/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37, 800/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 15,350/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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