The index for domestic steel scrap (end-cutting) in Mandi Gobindgarh, as reported by BigMint, declined by INR 300/t on 2 February, 2024, reaching INR 37,100/t on a delivered-at-plant (DAP) basis. The procurement of domestic scrap by mills in Mandi is at a satisfactory level, even though the overall working pace was subdued.
Semis’ market
In Mandi, the prices of steel ingot dropped by INR 200/t, settling at INR 42,500/t during the reporting and price normalization. Simultaneously, prices in several key markets experienced a decline of up to INR 100/t-250/t today. Despite selling pressure in the current market, major mills remain hopeful that the existing steel prices will mark the bottom line.
Raw materials price update
In Mandi, the price of sponge iron (CDRI) saw a reduction of INR 100/t, settling at INR 31,200/t. At the same time, pig iron (steel grade) prices in Ludhiana remained unchanged at INR 39,500/t on a delivered-at-plant (DAP) basis.
Overview of other markets
Gujarat’s Alang market saw a decrease of INR 200/t in ship-breaking melting scrap prices on 2 February, 2024, according to BigMint. The assessed price for HMS (80:20) reached INR 34,000/t ex-yard. With semi-finished steel prices dropping by approximately INR 200-300/t in the region during the last trading session, scrap suppliers adjusted their offers today in response to subdued buying inquiries.
In today’s trading session, Raipur steel market observed a slowdown in trade activity, with prices decreasing across various steel segments. The demand for steel has been sluggish in the market for the past couple of days. Billet prices fell by INR 100/t to INR 39,450/t, while rebar(Fe500) prices dipped by INR 100/t to INR 42,700/t exw.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic Vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $390-$398/t, which equates to approximately INR 35,197/t(including freight),while local scrap-HMS(80:20) prices in Mumbai decreased by INR 200/t to INR 32,500/t d-o-d.
In India, the appetite for imported scrap stayed subdued, with buyers hesitating to make purchases due to unfavorable pricing conditions. Indicative and offer prices for shredded scrap from Europe were reported at $415-$425/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,050/t.
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