India: BigMint's ferrous scrap index dips by INR 400/t ($4.78/t) -20 June
...
- Scrap prices continue to decline for sixth straight day
- Mumbai finished steel market sees inventory pressure
BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market continued to decline for the sixth consecutive day. Scrap index fell by INR 400/tonne (t) to INR 39,200/t DAP on 20 June, 2024. The Mandi market has experienced a persistent decline in semi-finished steel prices, accompanied by subdued purchasing interest from mills. This challenging environment has pressured local scrap traders to reduce prices and push their scrap into the market for sale.
Raw materials
Sponge iron (CDRI) prices in Mandi dropped by INR 400/t to INR 31,800/t, while steel-grade pig iron prices in Ludhiana fell by INR 200/t to INR 40,300/t today.
Steel market
In Mandi Gobindgarh, the price of steel ingots fell by INR 250/t to INR 45,800/t during the pricing normalisation phase. Concurrently, major market prices of semis saw declines ranging from INR 100 to INR 800/t. The most significant drop occurred in the Ghaziabad and Muzzafarnagar steel markets, where prices dipped by INR 800/t today.
In the region rebar(Fe500) price decreased by INR 400/t to INR 49,000/t. Over the past three days, the price of rebar has dropped by INR 900/t in the region.
Overview of other markets
Mumbai's IF route Rebar (Fe 500) prices decreased by INR 500/t d-o-d to INR 49,400/t exw. The market witnessed low-keyed trading activities. Due to huge inventory pressure manufacturers are giving heavy discounts to liquidate their material but buyers are restricting themselves for any bulk booking due to an unclear market trend. However, scrap (HMS 80:20) prices stand at INR 34,500/t DAP. Conversion spread from scrap to billet hovering at INR 9,300/t.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $390-$395/t, which equates to approximately INR 35,153/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained stable at INR 34,500/t today. In India, indicative prices of shredded scrap from Europe stood at $415-$418/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 15,500/t.
To see BigMint's melting scrap assessment, pricing methodology, and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - support@bigmint.co
