India: SteelMint's scrap index range-bound amid limited semis trade

SteelMint's domestic steel scrap (end-cutting) index dropped marginally by INR 100/t d-o-d to INR 43,000/t DAP Mandi Gobindgarh on 14 June, 2023. The market witnessed moderate trade activity with no bulk bookings heard.

Semi's market trend

Steel ingot prices in Mandi inched down by INR 100/t to INR 48,000/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by INR 100-200/t. The market was silent and limited trade was seen as ingot makers were hoping for a price rise while buyers were waiting for a downward price correction.

Imported scrap market

Imported scrap buyers in India continued to book small parcels of material available at workable prices. Offers came down slightly while buyers were waiting for prices to come down further below the $420-425/t level.

Overview of other markets

• Raipur: The market saw moderate trade in semis and finished steel. Billet prices were assessed at INR 44,100/t, down by up to INR 300/t d-o-d while rebar prices stood at INR 47,700/t, down by INR 100/t d-o-d.
  
  
• Mumbai: The market witnessed lesser sale today in finished steel due to a slowdown in billet prices in the northern and central regions. Slow arrival of scrap led to an increase in sponge buying since the last few days. However, HMS (80:20) prices are hovering at INR 37,000/t DAP.
  
  
• Durgapur: A short supply of sponge pellets and rising prices of pig iron have increased demand for scrap which resulted in limited availability of the same.
  
  

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 $417-$420/t, which equates to approximately INR 36,645/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,000/t DAP.
  
  
• Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 15,850/t.
  
  

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