India: BigMint's ferrous scrap index dips by INR 300/t d-o-d amid moderate trading -27 Sep
...
- Sponge iron drops by INR 200/t d-o-d
- Finished steel prices remain firm today
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market slipped down by INR 300/tonne (t) to INR 37,700/t DAP.
Today, the Mandi steel market displayed a mixed trend. During the first half of the trading session, activity was relatively quiet, with steel manufacturers slightly lowering semi-finished steel prices. However, in the latter half, as prices dipped, buyers became more active, leading to a notable increase in demand. This resurgence in buyer interest contributed to a more dynamic market environment in the second half of the day.
A mill owner informed BigMint: "Today's scrap market moved slowly, primarily due to the ongoing GST checks at the borders, which are hindering suppliers. Mills are in a holding pattern amid this situation, leading to a mixed trend in Mandi. In the near term, ingot prices are expected to range between INR 42,700/t to INR 43,500/t."
Raw materials' overview
Sponge iron (CDRI) prices decreased by INR 200/t to INR 31,000/t DAP in Mandi. In Ludhiana, pig iron (steel grade) prices inch up by INR 50/t to INR 39,500/t DAP.
Steel market trends
In the Mandi region, steel ingots dipped by INR 300/t to INR 43,000/t during the price reporting and normalisation phase. On the other hand, prices in other key markets decreased by INR 100/t to INR 550/t. The most significant decline was observed in the Raigarh market, where semi-finished steel prices dropped by INR 550/t today
Rebar (Fe500) prices in Mandi remained unchanged at INR 48,000/t ex-works, supported by moderate trading activity observed today.
Overview of Alang scrap market
On 27 September, 2024, prices of ship-breaking melting scrap in Alang, Gujarat, were stable d-o-d. BigMint indicates that HMS (80:20) is currently priced at INR 35,200/t ex-yard. The last trading session reflected moderate activity in semi-finished and finished steels. Moreover, decent demand from mills in Bhavnagar prompted suppliers to hold prices steady today.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $368-$371/t, which equates to approximately INR 33,241/t (including freight). Local scrap HMS (80:20) prices in Mumbai remained steady at INR 33,000/t DAP. In India, indicative prices of shredded scrap from Europe stood at $387-$392/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 12,700/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
