India: BigMint's ferrous scrap index dips by INR 200/t d-o-d
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- Steel prices remain range-bound in Mandi
- Low finished steel demand in Chennai market
BigMint's domestic end-cutting scrap index, decreased by INR 200/tonne (t) to INR 41,200/t DAP on 10 June, 2024. Mills persisted in sourcing scrap from the region, while buyers in the semi-finished steel market have remained quiet compare to yesterday's trading session.
Raw materials
Sponge iron (CDRI) prices in Mandi remained stable at INR 34,500/t, while steel-grade pig iron prices in Ludhiana increased by INR 100/t to INR 42,700/t today.
Semis, finished steel
Steel ingot prices in Mandi Gobindgarh fell by INR 200/t to INR 46,900/t during the price reporting and normalisation phase. On the other hand, prices of semis in other major markets witnessed a decline in the range of INR 100-200/t. There haven't been any significant shifts in the market recently, with prices remaining relatively stable in the region.
In Mandi, finished steel prices-rebar (Fe500) dropped by INR 200/t to INR 51,700/t today.
Overview of other markets
In Chennai market in South India, billet prices dropped by INR 200/t to INR 46,300/t, while rebar prices remained stable at INR 51,000/t. Meanwhile, HMS 80:20 prices decreased by INR 100/t to INR 35,000/t. According to market sources, demand for finished steel is very low, although scrap arrivals at mills are smooth. The market is expected to remain stable in the coming days.
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 $395-$400/t, which equates to approximately INR 35,447/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained unchanged at INR 36,000/t d-o-d. 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 16,450/t.
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