India: BigMint's ferrous scrap index drops by INR 100/t on muted trade inquiries - 6 Sept

• Raw material prices drop by INR 200/t d-o-d
  
  
• Semis' prices fall by INR 100/t in Mandi today
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market eroded by INR 100/tonne (t) to INR 36,900/t DAP on 6 September, 2024. The semi-finished steel market experienced muted trade inquiries today, with a noticeable drop in prices.

A mill owner told BigMint that mills in Mandi are procuring scrap on a regular basis, with a steady intake of sponge iron. Steel producers anticipate that prices in Mandi will remain range-bound due to weak global demand and sluggish domestic demand for finished steel, which are key factors contributing to the slow market. In the near term, ingot prices in Mandi are expected to stay within the range of INR 41,200/t to INR 42,300/t.

Raw materials overview

Sponge iron (CDRI) prices fell by INR 200/t to INR 29,800/t on Friday. Meanwhile, in Ludhiana, pig iron (steel grade) prices dropped by INR 200/t to INR 39,000/t DAP.

Over the past three months, prices have consistently declined, reflecting a downtrend in the market.

Steel market trends

In the Mandi region, steel ingot prices slipped by INR 100/t to INR 41,700/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets saw a slight dip of INR 100/t to INR 300/t. Rebar (Fe 500) prices remained steady at INR 46,400/t ex-works, with limited trades observed.

The price trend over the last three months has shown a continuous decline.

Overview of other markets

Alang's ship-breaking melting scrap prices remained firm with HMS (80:20) assessed at INR 34,000/t ex-yard, according to BigMint. Semi-finished and finished steel prices showed no significant changes in the last trading session, and moderate scrap demand prompted suppliers to maintain their current offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,800-5,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-$370/t, which equates to approximately INR 33,260/t (including freight). Meanwhile, local scrap, HMS (80:20), prices in Mumbai remained stable at INR 32,700/t DAP. In India, indicative prices of shredded scrap from Europe stood around $385-$390/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 13,250/t.

To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here

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