SteelMint: Mandi scrap index falls by INR 800/t on lower bids - 16 July

SteelMint's domestic steel scrap (end-cutting) index fell by INR 800/t to INR 46,400/t DAP Mandi Gobindgarh..

LMS (light melting scrap) prices were assessed at INR 41,100/t, HMS 80:20 at INR 43,600/t, and CR busheling scrap at INR 47,700/t today.

Steel ingots prices in Mandi witnessed a slight correction of INR 700/t d-o-d to INR 52,000/t at the time of reporting and price normalisation.

Prices of ship-breaking melting scrap in Gujarat's Alang market dropped by INR 300/t d-o-d on 16 July. Prices of HMS (80:20) are assessed at INR 43,200/t exy.

Sources said, there were plenty of offers in the market but buyers kept to the sidelines in hopes of a correction in prices in the upcoming week, SteelMint learned from sources.
Additionally, weak demand for finished steel products dragged down semi-finished steel prices which also resulted in a sharp correction in scrap prices.

Re-rollers said that due to falling steel prices, retailers may adopt a wait-and-watch mode which may slow down scrap buying inquiries in the near term.

Market highlights-

End-cutting and ingot spread: The end-cutting scrap and ingot spread remained unchanged today at INR 5,500-6,000/t.

Domestic and imported scrap price gap: In Mumbai, melting scrap imported from West Africa (HMS 80:20) was traded yesterday at $468/t, while Dubai scrap and Europe scrap were sold at $478/t and $470/t respectively. Mumbai-based mills and those in nearby regions prefer to import scrap because domestic material is costlier by about INR 4,000/t.

Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,400-14,500/t.

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