India: SteelMint's scrap index extends losses for third straight day
...
SteelMint's domestic ferrous scrap (end-cutting) index edged lower for the third straight day, falling by INR 200/t d-o-d to INR 39,600/t DAP Mandi Gobindgarh today on declining steel demand. The market saw limited buying activity for semis and finished products. Major mills are cutting their production by up to 30-40%, and some mills are running below 10-12 hours. Only need-based purchases for low volumes are being made by mills. Meanwhile, the shortage of scrap persisted in the market.
"The Mandi scrap market is weaker as most traders are facing difficulty in procuring scrap at current prices," a trader informed SteelMint.
Semis market trends
In Mandi, steel ingot prices fell by INR 200/t to INR 45,700/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by INR 200-400/t while trade activity declined d-o-d.
Imported scrap market
Imported scrap buyers in India remained active in the market, with some deals heard for HMS from West Africa and other origins. Meanwhile, some buyers are looking for further price corrections after the recent transaction recorded by the Turkish mill.
On the other hand, some suppliers are desperate to sell their material at a workable price before the market goes down further while some yard owners are not in a hurry to sell.
Overview of other markets
Alang: Ship-breaking melting scrap prices remained unchanged d-o-d today in Gujarat's Alang market. As per SteelMint's assessment, HMS (80:20) prices stand at INR 36,500/t exy. Limited trade for semis and finished steel in yesterday's trading session and moderate bookings for scrap prompted sellers to keep offers stable.
Raipur: The market witnessed limited demand for steel, resulting in scrap buyers remaining silent today. Billet prices in Raipur fell by INR 250/t to INR 40,500/t while rebar prices stood at INR 42,800/t, down by INR 300/t d-o-d.
Hyderabad:Demand was nil today due to heavy rainfall. Rebar prices fell by INR 500/t to INR 46,000/t while sponge iron prices decreased by INR 150/t to INR 27,150/t. Buyers were not interested in booking at higher prices in a sluggish finished market.
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 34,182/t (including freight). Local scrap (HMS 80:20) prices in Mumbai remained stable d-o-d at INR 34,800/t.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 14,400/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.
