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SteelMint's scrap index remains consistent d-o-d amid a weaker market trend

SteelMint’s domestic steel scrap (end-cutting) index remained stable d-o-d at INR 41,000/tonne (t) DAP Mandi Gobindgarh on 9 August, 2023. Mandi market remained...

Melting Scrap
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9 Aug 2023, 18:07 IST
SteelMint's scrap index remains consistent d-o-d amid a weaker market trend

SteelMint's domestic steel scrap (end-cutting) index remained stable d-o-d at INR 41,000/tonne (t) DAP Mandi Gobindgarh on 9 August, 2023. Mandi market remained silent in both trading sessions while scrap traders are busy to deliver their old bookings. For scrap traders, yesterday's evening trading session was quite successful because they sold scrap in good volumes.

Semis' steel market

Steel ingot prices remained unchanged d-o-d at INR 46,000/t in Mandi Gobindgarh at the time of reporting and price normalisation. Prices in almost all the key markets decreased by INR 100-200/t. In the major markets, slow buying activity was seen while buyers remained silent and hoped for some price drop in steel ingots.

Imported scrap market

Steel producers are actively watching market behaviour in India as steel demand continues to improve. Imported scrap consumption has slightly increased by 10% y-o-y in July. Considering the active participation of scrap buyers, suppliers are reluctant to lower their offers. Some buyers are looking for prices to cool off.

Overview of other markets

Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 300/t d-o-d on 9 August 2023, as per SteelMint's assessment. HMS (80:20) prices were assessed at INR 37,200/t exy. Semi-finished steel prices fell in yesterday's trading session in Bhavnagar. Meanwhile, limited trading activity for scrap prompted suppliers to reduce their offers today.

Raipur: The market witnessed moderate trade activity in the second half of the trading session. Billet prices in Raipur were assessed at INR 42,000/t rose by INR 50/t, while rebar prices stood at INR 44,200/t fell by INR 200/t d-o-d. End cutting scrap prices fell up to INR 100/t to INR 39,100/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 are at around $390-$398/t, which equates to approximately INR 35,176/t (including freight). Meanwhile, local scrap prices stood at INR 35,000/t increased by 300/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 13,300/t.


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

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.

9 Aug 2023, 18:07 IST

 

 

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