India: SteelMint's scrap index stable despite weak steel demand
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SteelMint domestic steel scrap (end-cutting) index remained stable on 21 June, 2023, at INR 42,500/t DAP Mandi Gobindgarh. The Mandi market saw limited demand for semis and finished steel, with no major trade activity.
Semis market trends
In Mandi, steel ingot prices remained stable d-o-o at INR 47,500/t at the time of reporting and price normalisation. Prices in almost all key markets increased by INR 100/t.
In the first half of the trading session, ingot prices opened on a positive note but in the second half, buyers remained silent, and the market witnessed prices dropping by up to INR 100/t. Selling pressure continues in the market.
Imported scarp market
In India, steel producers are showing more interest in booking Australian material instead of UK/EU material due to the lower freight rates and premium quality of Australian scrap. Prices of HMS(80:20) stood at $420/t.
Overview of other markets
In Gujarat's Alang market, ship-breaking melting scrap prices remained stable d-o-d on 21 June, as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 39,000/t exy. Even as buying inquiries for semi-finished and finished steel were limited in yesterday's trading session, scrap offers remained supported on active demand and moderate supply of material.
The Raipur market continued to witness subdued trade sentiments, with extremely limited activity. Mills are offering attractive discounts to local suppliers and traders in an attempt to stimulate demand.
Jalna: In today's trading session, the market observed a restricted demand for finished steel. According to reliable sources, there is a possibility of a slight correction in scrap prices in the coming days.
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 $408-$413/t, which equates to approximately INR 36,073/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,200/t, up by INR 200/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 stood at INR 16,350/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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