India: SteelMint's scrap index slides, semis' demand remains moderate

SteelMint's domestic steel scrap (end-cutting) index inched down by INR 100/t d-o-d to INR 42,200/tonne (t) DAP Mandi Gobindgarh on 29 May 2023. Although the market did see some buying activities, the demand for semi-finished steel was average in the second half of the trading session.

Ingot market trends

Steel ingot prices in Mandi edged down by INR 100/t to INR 47,300/t d-o-d at the time of reporting and price normalisation. Prices in other key markets decreased by INR 200-500/t. The ingots market saw moderate trade activity, while the flow of finished steel was slow.

Scrap market scenario

Overall, action in the scrap market was moderate since traders were busy delivering prior bookings. The scrap traders benefited from today's trading sessions as large mills approached them with requests for somewhat higher volumes than yesterday's.

Imported scrap

Where imported scrap is concerned, all the players are in wait-and-watch mode and avoiding taking any buying decision. Thus, silence prevailed in the market today as prices continued to remain range-bound. Buyers are obviously holding back bookings till they get a clearer market picture, which they may as the week progresses. The start of the week is usually a bit hazy.

Shredded scrap of EU-origin stood at $435/t while the same grade from the US was assessed at $430/t.

Overview of other markets

Ship-breaking melting scrap prices edged down by INR 200/t d-o-d in Alang, Gujarat, on 29 May. As per SteelMint's assessment, HMS (80:20) prices stood at INR 38,500/t exy. Falling semi-finished steel prices in the region and limited trading activities in scrap at prevailing offers prompted suppliers to lower prices today.

Raipur: There was no major improvement in the market as demand for semis and finished steel remained modest. Billet prices in raipur assessed at INR 43,300/t down by INR 300/t d-o-d.

Price highlights

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

Domestic/imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at $418-$422/t, which equates to approximately INR 37,062/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,800/t DAP.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 15,400/t.

To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here

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