India: BigMint's ferrous scrap index dips INR 100/t d-o-d
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- Mills procuring scrap at a moderate pace
- Steel market slow over the last couple of days
BigMint's domestic end-cutting scrap index, which monitors the Mandi Gobindgarh market, decreased by INR 100/tonne (t) to INR 41,100/t DAP on 24 May, 2024. Mills persisted in sourcing scrap from the region, while buyers in the semi-finished steel market have remained quiet over the past few days.
Raw materials
Sponge iron (CDRI) prices in Mandi remained stable at INR 35,000/t, while steel-grade pig iron prices in Ludhiana decreased by INR 500/t to INR 43,000/t today.
Semis, finished steel
Steel ingot prices in Mandi Gobindgarh fell by INR 100/t to INR 46,800/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.
In Mandi, finished steel prices-rebar (Fe500)-remained unchanged at INR 51,700/t today.
Overview of other markets
In the Maharashtra-based Jalna market, prices for semi-finished steel inched down by INR 100/t to INR 46,300/t. Meanwhile, prices for rebar and HMS 80:20 remained stable at INR 52,300/t and INR 37,100/t, respectively. Market sources indicate that scrap arrivals are at a moderate level, with some mills having booked imported scrap, which will start being delivered by the end of the month or the first week of June.
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 $398-$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 36,500/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $412-$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.
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