India: SteelMint's scrap index drops INR 1,000/t w-o-w amid subdued trading
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SteelMint's domestic steel scrap (end-cutting) index decreased by INR 200/t d-o-d to INR 39,300/t DAP Mandi Gobindgarh on 22 July, 2023. In Mandi, trade remained subdued throughout the week and the index slipped INR 1,000/t w-o-w.
Trade movements were sluggish as scrap traders tried to obtain material at lower costs," a source informed SteelMint.
Semi-finished steel market
In Mandi, steel ingot prices decreased by 200/t to INR 44,300/t d-o-d at the time of reporting and price normalisation. Prices in almost all the key markets remained stable d-o-d.
Mandi market scenario
Semi-finished steel (ingots) prices witnessed a negative correction of INR 900/t w-o-w.
The market in north India witnessed weak demand and very limited sales of semi-finished and finished steel. Small mills were under selling pressure working at very low profit margins.
Weekly imported scrap market
Indian scrap buyers remained active in the market, with some transactions recorded this week. Steel producers are more interested in booking HMS-grade material, while bearish demand for semi-finished and finished steel is weighing on sentiments. Interestingly, prices were range-bound towards the weekend. Yet deals remained absent as buyers looked for clearer market direction.
Meanwhile, trading activities for sponge iron increased on improved demand at lower prices, especially in the eastern and central regions. Nevertheless, market players remained cautious due to a lacklustre response from the finished steel market, SteelMint notes. UK-origin shredded scrap offers are at $405/t CFR Nhava Sheva, mostly stable w-o-w.
Overview of other markets
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, continued to remain steady on 22 July. As per SteelMint's assessment, HMS (80:20) prices stood at INR 36,500/t exy. Moderate buying inquiries along with range-bound semi-finished steel prices in the region prompted suppliers to keep offers firm.
Chennai: No major improvements were seen in the market, as prices tender lower. Trade activity remained dull, and only need-based trading was seen in the market. Billet prices in Chennai stood at INR 43,500/t, while rebar prices were assessed at INR 47,800/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 $380-$390/t, which equates to approximately INR 34,163/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 34,300/t, down INR 500/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 14,350/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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