India: BigMint's ferrous scrap index falls by INR 200/t ($2.42/t)
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BigMint's ferrous scrap index on 11 March, 2024, showed a decline in domestic end-cutting scrap prices at Mandi Gobindgarh steel market, dropping by INR 200/t to INR 37,700/t for DAP (delivered at plant) basis. Despite good scrap arrival, mills were procuring domestic steel scrap at decent levels. However, disparities persisted in scrap procurement by mills.
Semis' market
Steel ingot prices experienced a slight decline of INR 200/t to INR 43,100/t d-o-d during price reporting and normalisation. Similar trends were noted in several significant markets, with steel ingot prices decreasing by INR 100 to INR 400/t.
Today in Mandi, the conversion spread from scrap to ingot decreased by INR 100/t, settling at INR 10,900/t.
Raw materials price update
In Mandi, the price of sponge iron (CDRI) dropped by INR 100/t to INR 31,000/t, while pig iron (steel grade) prices in Ludhiana declined by INR 100/t to INR 39,000/t on a delivered-at-plant (DAP) basis.
Overview of other markets
On 11 March, 2024, there was a slight decrease of INR 100/t in ship-breaking melting scrap prices at Gujarat's Alang market. BigMint's assessment showed the opening prices of HMS (80:20) at INR 33,900/t ex-yard. The market observed limited trading in semi-finished and finished steel in the last session, leading to moderate buying inquiries for scrap and subsequent reductions in offers by suppliers.
In the Maharashtra-based Jalna steel market, prices for semi-finished steel fell by INR 100/t to INR 42,700/t, while finished steel prices remained stable, assessed at INR 49,300/t. On the other hand, HMS 80:20 prices inched up by INR 100/t to INR 33,100/t. A mill owner informed BigMint, "In the past couple of days, a very good quantity of rebar bookings were made, with most mills selling their material until 15-20 March 2024. However, in today's trading session, trade activities were slow in finished steel."
Imported scrap market
Today, Indian buyers chose to stay on the sidelines and opted to procure scrap from the domestic market due to its cost-effectiveness. Shredded scrap offers from Europe and the US were observed within the range of $400-$410/t CFR.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic vs imported scrap: The imported melting scrap prices at Nhava Sheva Port stood at approximately $373/t-$378/t, equivalent to around INR 33,470/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai remained constant, settling at INR 33,500/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 stood at INR 13,450/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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