India: BigMint's ferrous scrap index dips INR 400/t d-o-d, bid-offer disparity prevails-11 Sept
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- Sponge iron prices remain stable today
- Semis, finish steel prices drop by INR 200/t
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market dipped by INR 400/tonne (t) to INR 36,200/t DAP today. The market saw limited trading activity in semis, finished steel, and scrap as prices continued to decline in the Mandi steel market.
In the region, mills have reduced scrap procurement in recent days due to the new government policy on the Reverse Charge Mechanism (RCM) for steel scrap, which has widened the bid-offer gap between buyers and sellers. While some essential purchasing continues in the market, scrap suppliers have lowered their margins on Wednesday. However, mills are holding out in anticipation of further discounts. Additionally, steel producers in Himachal Pradesh have suspended scrap purchases as of 10 September.
Raw materials overview
Sponge iron (CDRI) prices remained stable at INR 29,800/t DAP in Mandi, holding steady for the past few days with moderate trading activity.
Meanwhile, in Ludhiana, pig iron (steel grade) saw a significant decline, with prices dropping by INR 250/t to INR 38,200/t DAP. Over the past three months, the price trend has shown a consistent downward trajectory.
Steel market
In the Mandi region, steel ingot prices slid by INR 200/t to INR 41,300/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets declined by INR 100/t to INR 400/t. The Ludhiana and Jaipur steel markets witnessed the most significant drop, with semi-finished steel prices falling by INR 400/t.
In Mandi, rebar (Fe500) prices decreased by INR 200/t to INR 46,000/t exw, with market activity showing slightly reduced inquiries. Rebar prices have been steadily declining over the past three months.
Overview of Alang market
On 11 September, Alang's ship-breaking melting scrap prices remained unchanged for the fifth consecutive day, with HMS (80:20) prices holding firm at INR 34,000/t ($405/t) ex-yard, according to BigMint. Although prices of semi-finished steel were stable yesterday, steady buying interest from Bhavnagar-based induction furnace (IF) steel mills led suppliers to maintain the current prices.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,100/t.
Domestic vs imported scrap: Imported melting scrap prices at the Nhava Sheva Port were at $370-$375/t, which equates to approximately INR 33,691/t (including freight). Meanwhile, local scrap HMS (80:20) prices in Mumbai remained stable at INR 32,500/t DAP. In India, indicative prices of shredded scrap from Europe stood around $390-$398/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 12,400/t.
To see BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
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