India: SteelMint's scrap index falls INR 300/t d-o-d on limited enquiries

SteelMint's domestic steel scrap (end-cutting) index fell by INR 300/t d-o-d to INR 41,900/t DAP Mandi Gobindgarh on 19 September, 2023. Limited trading activity was seen in the Mandi market today. But mills as well as traders are expecting an improvement in prices. Meanwhile, availability of steel scrap was good in the market. In the region, sponge iron (CDRI) prices rose by INR 300/t to INR 36,800/t.

Steel market

Today, steel ingot prices in Mandi Gobindgarh remained stable at INR 47,600/t at the time of reporting and price normalisation. Prices in almost all key markets decreased in the range of INR 100/t. Due to limited demand for semi-finished and finished steel, trading activity in the market remained subdued.

Overview of other markets

Ship-breaking melting scrap prices in Gujarat's Alang market inched up by INR 300/t d-o-d on 19 September. HMS (80:20) prices were assessed at INR 39,500/t exy. Prices of semi-finished steel rose during the last trading session and moderate demand for scrap from the induction furnace-based mills in Bhavnagar, Gujarat, prompted suppliers to hike their offers today.

Durgapur: The semi-finished steel market witnessed a slight hike in offers following hike in finished steel offers in the eastern region. Only need-based buying was observed in the Durgapur market and so trade volumes were moderate, as buyers remained cautious about bulk bookings.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread stood at INR 5,000-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $406-$414/t, which equates to approximately INR 36,655/t (including freight). Meanwhile, in Mumbai, local scrap prices were unchanged, standing at INR 37,000/t, up by INR 200/t d-o-d. Today, the demand for imported ferrous scrap in India remained subdued, with limited market activity attributed to Ganesh Chaturthi festival.

Offers for shredded scrap from Europe were assessed at $426-$428/t CFR Nhava Sheva, while HMS (80:20) scrap offers were heard at $412-$414/t CFR. The market will remain slow this week.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 13,350/t.

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