India: SteelMint's scrap index unchanged amid moderate demand for semis
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SteelMint's domestic steel scrap (end-cutting) index remained stable at INR 42,300/t DAP Mandi Gobindgarh on May 24, 2023. Today in Mandi, the market for semi-finished and finished steel witnessed moderate trading activity.
Steel ingot prices in Mandi inched up by INR 50/t to INR 47,400/t at the time of reporting and price normalisation. Prices in almost all key markets decreased by up to INR 100/t. Today's market saw an average buying trend compared to yesterday, although green shoots of demand were seen appearing for semis and finished steel.
Current market trends
The domestic scrap market saw average trading activity today as major mills banked on local traders for scrap supply.
The availability of scrap is decent in the Mandi market and demand for scrap has improved slightly compared to yesterday's trading session.
Imported scrap prices
EU-origin shredded scrap offers stood at $440/t, while the same grade from the US was assessed at $435/t.
Overview of other markets
Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 300/t d-o-d on 24 May, as per SteelMint's assessment. HMS (80:20) prices were assessed at INR 38,500/t exy. Semi-finished steel prices fell in yesterday's trading session in the region. In addition, limited trading activities at current price levels for scrap resulted in suppliers reducing their offers today.
"The markets in south India are subdued due to very poor demand for finished steel and it doesn't look like demand will improve in the short term," a Chennai-based mill source informed.
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 $420-$425/t, which equates to approximately INR 37,314/t (including freight). Local scrap (HMS 80:20) prices in Mumbai stood at INR 37,300/t, down up to 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 stands at INR 15,750/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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