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India: BigMint's ferrous scrap index decreases by INR 500/t ($6/t) - 24 June

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Melting Scrap

BigMint Bureau

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24 Jun 2024, 19:03 IST

India: BigMint's ferrous scrap index decreases by INR 500/t ($6/t) - 24 June

Mandi scrap prices fall by INR 2,300/t m-o-m

Raipur semis' market see a drop of INR 950/t d-o-d

BigMint's domestic end-cutting scrap index fell by INR 500/t to INR 38,400/t DAP in the Mandi Gobindgarh market on 24 June, 2024. Local buyers anticipated a continued decline in prices across all steel segments, with ingot prices dropping to INR 44,000/t. Additionally, scrap buyers faced challenges in procuring material at these lower prices as suppliers held onto their stock today. In the region, scrap prices dipped by INR 2,300/t on a m-o-m basis as prices touched a three-month low.

Raw materials

Sponge iron (CDRI) prices in Mandi dropped by INR 100/t to INR 31,200/t, while steel-grade pig iron prices in Ludhiana fell by INR 200/t to INR 40,000/t today. In response to sluggish demand from mills, suppliers lowered their offers prices in alternate raw materials.

Steel market

In Mandi Gobindgarh, the price of steel ingots decreased by INR 500/t to INR 44,000/t during the pricing normalisation period. Meanwhile, prices of semis in major markets experienced declines ranging from INR 300 to INR 950/t, with the Raipur steel market experienced the most significant decline, with prices dropping by INR 950/t. In the region, rebar(Fe500) prices decreased by INR 300/t to INR 49,000/t. Prices fell by INR 1,600/t w-o-w, attributed to the reduced pace of buying.

Overview of other markets

According to BigMint's assessment, ship-breaking melting scrap prices in Gujarat's Alang market fell by INR 700/t ($8.38/t) on 24 June 2024. HMS (80:20) prices were evaluated at INR 36,800/t ex-yard. The regional market experienced low demand for semi-finished and finished steel in yesterday's trading session. Additionally, restricted scrap trade activity caused suppliers to decrease their offers today. On a weekly basis, HMS (80:20) scrap prices dropped by INR 900/t.

Price highlights

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $390-$395/t, which equates to approximately INR 35,166/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai fell by INR 300/t to INR 34,300/t. In India, indicative prices of shredded scrap from Europe stood at $415-$420/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 stands at INR 14,950/t.