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India: BigMint's ferrous scrap index declines by INR 300/t ($3.59/t)-3 Jun'24

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Melting Scrap

BigMint Bureau

103 Reads

3 Jul 2024, 19:12 IST

India: BigMint's ferrous scrap index declines by INR 300/t ($3.59/t)-3 Jun'24

Mills focusing on procuring domestic scrap

Ingot prices decline by INR 200/t d-o-d

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market dropped by INR 300/tonne (t) ($3.59/t) to INR 38,500/t ($461/t) DAP on 3 July, 2024. Trade activity in the region was slow compared to the past couple of days, but mills are focusing on domestic scrap as the imported material is not offering price viability at the moment. The market appears range-bound this week, with ingot prices expected to remain between INR 44,000-44,500/t in Mandi. The trade momentum is likely to fluctuate based on buying activity.

Raw materials overview

Sponge iron (CDRI) prices in Mandi dropped by INR 100/t to INR 31,200/t. Conversely, pig iron (steel grade) prices in Ludhiana increased by INR 200/t to INR 40,900/t DAP.

Steel market overview

In the Mandi region, steel ingot prices fell by INR 200/t to INR 44,400/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets decreased by INR 150/t to INR 400/t. The Ahmedabad steel market experienced the most significant drop, with prices declining by INR 400/t d-o-d. Rebar (Fe500) prices remained stable at INR 49,200/t ex-works on moderate demand in Mandi.

Overview of other markets

According to BigMint's assessment, ship-breaking melting scrap prices in Alang, Gujarat, remained stable on 3 July, 2024. HMS (80:20) prices were assessed at INR 36,500/t ($437/t) ex-yard. The region experienced average trade activity for semi-finished and finished steels during the previous trading session. Additionally, moderate scrap buying inquiries from Bhavnagar-based IF steel mills led suppliers to keep their offers stable 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: Imported melting scrap prices at Nhava Sheva Port were at $388-$390/t, which equates to approximately INR 34,761/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 34,000/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$415/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 14,400/t.