India: BigMint's ferrous scrap index drops INR 100/t d-o-d amid moderate trade
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BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market fell slightly by INR 100/tonne (t) to INR 40,700/t DAP on 27 May, 2024. The steel market observed moderate trading activity, with routine operations seen in the scrap segment, while suppliers are cautiously anticipating further positive developments in the near term.
Steel market
Steel ingot prices in Mandi Gobindgarh remained constant at INR 46,400/t during the price reporting and normalisation phase. Similarly, prices in various markets witnessed a mixed trend today. Rourkela saw a drop of INR 200/t in prices to INR 42,300/t, while Ghaziabad witnessed an increase by INR 300/t to INR 45,600/t d-o-d.
Rebar (Fe500) prices in Mandi fell by INR 200/t to INR 51,300/t amid routine trades.
Overview of other markets
Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 27 May. According to BigMint's assessment, HMS (80:20) prices were at INR 38,300/t ($461/t) ex-yard. Though semi-finished steel prices decreased in the last trading session in the region, moderate buying inquiries for scrap by the Bhavnagar-based IF steel mills prompted suppliers to keep offers stable today.
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 $396-$400/t, which equates to approximately INR 35,300/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained unchanged at INR 36,500/t d-o-d.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at INR 15,700/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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