India: SteelMint's scrap index remains range-bound on soft steel demand
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SteelMint's domestic steel scrap (end-cutting) index remained unchanged d-o-d at INR 41,800/t DAP Mandi Gobindgarh on 16 September. Modest trading activity was seen in the Mandi market today, but mills as well as scrap traders are expecting a strong rebound in prices in the current week. Meanwhile, the availability of steel scrap was good in the market today. Sponge iron (CDRI) prices remained stable d-o-d at INR 36,300/t.
Mandi market: Weekly scenario
The weekly scrap market in Mandi remained moderate, as no big deals were heard in the region. Disparity in bids and offers was seen in the local scrap market. In the region, mills continued to track imported scrap at discounted prices.
Semi-finished steel market
Today steel ingot prices in Mandi increased by INR 50/t to INR 47,300/t at the time of reporting and price normalisation. Meanwhile, prices in other key markets increased by INR 100/t. The market witnessed minimal trade in semi-finished and finished steel.
Weekly price movements
Ingot prices in Mandi Gobindgarh rose by INR 400/t. End-cutting scrap prices remained unchanged. Sponge iron (CDRI) prices increased by INR 500/t, while rebar prices rose by INR 200/t w-o-w.
Imported scrap market
The market for imported ferrous scrap was sluggish this week. Steel mills opted to hold their procurement amid a noticeable gap between bid and offer prices. It is expected that demand will continue to remain subdued due to upcoming festivities, as finished steel sales are subdued leading to reduced scrap consumption.
Notably, offers for shredded scrap from the UK have declined by $5/t w-o-w, falling from $437.4/t last week to $431.6/t CFR Nhava Sheva this week. A few deals were heard from West Africa, Europe, South America, the US, and Australia this week.
Overview of other markets
Ship-breaking melting scrap prices in Alang, Gujarat, opened stable d-o-d. As per SteelMint's assessment, HMS (80:20) prices stand at INR 39,200/t exy. Though semi-finished and finished steel prices increased in the last trading session, moderate trades in scrap at higher prices, prompted suppliers to keep offers stable today. Alang HMS(80:20) scrap prices rose by INR 900/t w-o-w.
Raipur: The market saw moderate demand for semi-finished and finished steel. Steel prices improved this week but demand is still average. Billet prices are up by INR 50/t to INR 44,950/t, while rebar prices are at INR 44,700/t, stable d-o-d.
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 36,599/t (including freight). Meanwhile, in Mumbai, local scrap prices stood at INR 36,800/t, up by INR 100/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 13,950/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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