India: BigMint's ferrous scrap index drops INR 100/t as market remains muted
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- Mills focusing on procuring domestic scrap
- Steel ingot prices fall by INR 300/t d-o-d
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market dropped by INR 100/tonne (t) to INR 39,000/t DAP on 16 July, 2024. Demand for semi-finished and finished steel was subdued in the region. Scrap shortage has enabled suppliers to capitalise on the situation, leading to significant disparities between scrap buyers and sellers. Steel mills are continuing to procure domestic scrap while remaining inactive in the imported scrap market.
Raw materials overview
Sponge iron (CDRI) prices in Mandi dropped INR 100/t to INR 30,500/t. Moreover, pig iron (steel grade) prices in Ludhiana decreased by INR 100/t to INR 40,400/t DAP.
Steel market trends
In the Mandi region, steel ingot prices fell by INR 300/t to INR 44,000/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets decreased by INR 100/t to INR 600/t. The Ludhiana steel market experienced the most significant drop, with prices declining by INR 600/t d-o-d amid subdued trade activity.
Rebar (Fe500) prices remained stable at INR 48,800/t ex-works amid limited demand in Mandi.
Overview of other markets
Mumbai's IF route rebar (Fe 500) prices remained stable d-o-d at INR 46,800/t exw. Limited trading activities were witnessed in the market as buyers have procured sufficient material over the past few days. Scrap (HMS 80:20) prices are at INR 32,800/t DAP. Conversion spread from scrap to billet is around INR 9,200/t.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$392/t, which equates to approximately INR 34,961/t (including freight), while local scrap, HMS (80:20), prices in Mumbai moved up by INR 100/t to INR 32,800/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$415/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 13,800/t.
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