India: SteelMint's scrap index slides on soft steel market sentiments

SteelMint's domestic steel scrap (end-cutting) index decreased by INR 300/t d-o-d to INR 40,900/t DAP Mandi Gobindgarh on May 6, 2023. Demand for semis and finished steel is still on a downward trend.

Today, steel ingot prices in Mandi fell by INR 200/t d-o-d to INR 46,100/t at the time of reporting and price normalisation. Prices in almost all key markets fell by INR 100-200/t. There was modest trading activity in the market.

Current market scenario of Mandi

Semi-finished steel (ingots) prices witnessed a negative correction of INR 1,400/t w-o-w.

Scrap traders in Mandi are mostly holding their material, which was previously booked at higher rates.

Imported scrap

Trade was subdued throughout the week in major South Asian countries like India, Bangladesh and Pakistan following global trends as some deals were witnessed at lower prices while LC restrictions predominated.

Prices of shredded scrap of Europe origin stood at $432/t while the same grade scrap of US origin was assessed at $426/t.

Overview of other markets

Ship-breaking melting scrap prices in Alang, Gujarat, moved down further by INR 500/t d-o-d today. HMS (80:20) prices opened at INR 37,300/t exy. Lack of demand and buying enquiries, due to the downward correction in semis prices and limited trading in finished steel, weighed on prices.

Durgapur: Market saw limited trade enquiries d-o-d as modest demand in steel continues in the market. Billet prices in Durgapur stood at INR 43,400/t fell up to INR 400/t 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/imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at around $414-$418/t, which equates to approximately INR 36,363/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 36,500/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 15,900/t.

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