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India: SteelMint's scrap index drops INR 200/t d-o-d on soft steel demand

SteelMint’s domestic steel scrap (end-cutting) index decreased by INR 200/t d-o-d to INR 40,200/t DAP Mandi Gobindgarh on 7 October, 2023. Traders are currently...

Melting Scrap
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7 Oct 2023, 16:44 IST
India: SteelMint's scrap index drops INR 200/t d-o-d on soft steel demand

SteelMint's domestic steel scrap (end-cutting) index decreased by INR 200/t d-o-d to INR 40,200/t DAP Mandi Gobindgarh on 7 October, 2023. Traders are currently focused on delivering scrap from earlier bookings by mills, with no big deals reported from the mills. Intense buying activity was missing today despite a slowdown in scrap arrivals over the past few days.

Semi-finished steel market

In Mandi, steel ingot prices decreased by INR 100/t d-o-d, settling at INR 46,300/t during the time of report and price standardisation. Simultaneously, prices in other primary markets fell by INR 100-200/t. The regional market witnessed slow trade enquiries in semi-finished and finished steel, as liquidity concerns still persisted in the market. Rebar prices dipped INR 200/t to INR 51,000/t today.

Imported scrap market

India's demand for imported ferrous scrap remained subdued as buyers adopted a cautious approach at the start of the week. However, in the past two days, there has been a slight uptick in trading activity. Nevertheless, deals finalised during this period were at lower price levels compared to the previous week.

Some buyers chose to remain on the side-lines, planning to stay out of the market until the end of October, as they have already secured adequate material.

Offers for shredded scrap from Europe for India declined approximately $12/t w-o-w, settling at $410-412/t CFR Nhava Sheva compared with $424/t CFR a week ago.

Overview of other markets

On 7 October, Alang, Gujarat's ship-breaking melting scrap prices held consistent d-o-d. SteelMint's evaluation marked HMS (80:20) prices at INR 39,000/t exy. Given the subdued buying interest for semi-finished and finished steel in the recent trading session, scrap suppliers opted to maintain their current offers.

The Mumbai market observed restricted trading in both semi-finished and finished steel. Billet prices were at INR 46,600/t, down INR 100/t, while rebar prices remained unchanged d-o-d at INR 51,700/t.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread stood at INR 5,500-6,100/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $395-$398/t, which equates to approximately INR 35,281/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 36,500/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 13,200/t.

To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.

7 Oct 2023, 16:44 IST

 

 

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