India: BigMint's ferrous scrap index falls by INR 200/t d-o-d

BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market declined by INR 200/tonne (t) d-o-d to INR 41,300/t DAP on 2 May, 2024. Today's market witnessed cautious and selective buying from buyers, resulting in muted trading activity.

Steel ingot prices in Mandi fell by INR 200/t to INR 47,000/t during the price reporting and normalisation phase. On the other hand, semis' prices in other major markets witnessed a decline, ranging from INR 100-500/t. Today, there was a muted buying activity observed in both the semi-finished and finished steel markets, leading to a dip in steel prices. In contrast, prices improved by INR 500/t to INR 46,500/t in Mumbai on active trades in finished steel.

Overview of other markets

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 2 May, 2024. According to BigMint's assessment, HMS (80:20) prices were at INR 38,300/t ($459/t) ex-yard. Although semi-finished steel prices increased in yesterday's session in the region, trade activities remained moderate. Meanwhile, trade activities in scrap were at a modest level, prompting suppliers to maintain stable prices today.

Price highlights

End-cutting, billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,800/t.

Domestic vs imported scrap market: Imported melting scrap prices at Nhava Sheva Port were at around $405-$410/t, which equates to approximately INR 36,200/t (including freight). Local scrap-HMS (80:20) prices in Mumbai increased by INR 500/t to INR 36,000/t. In India. While shredded scrap offers from the US and Europe were reported at $425-430/t CFR.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 14,850/t.

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

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