India: BigMint's ferrous scrap index falls by INR 200/t d-o-d

As per BigMint's assessment on 9 February 2024, the index for domestic steel scrap (end-cutting) in Mandi Gobindgarh witnessed a decrease of INR 200/tonne (t), settling at INR 36,800/t on a delivered-at-plant (DAP) basis.

"The recent surge in domestic steel scrap availability over the last couple of days has empowered mills to tactically cut down their scrap procurement costs. With the prevailing subdued market conditions in the steel sector and the arrival of sponge iron in decent volumes, scrap suppliers lowered their prices today in Mandi Gobindgarh," a scrap supplier informed BigMint.

Semis' market

In Mandi, prices of steel ingots dropped by INR 50/t compared to the previous day, settling at INR 42,300/t during reporting and price normalisation period. Meanwhile, prices in several key markets experienced a decline ranging from INR 100/t to INR 400/t today. In the region, prices of rebar (Fe500) remained unchanged d-o-d, standing at INR 46,800/t.

"While the semi-finished and finished steel market experienced some positive movement yesterday, today's market witnessed moderate trade activity. However, overall demand for finished steel remained weak, and the market conditions remained relatively stagnant, resulting in the absence of significant deals in Mandi," a trader told BigMint.

Overview of other markets

Gujarat: On 9 February, 2024, ship-breaking melting scrap prices in Gujarat's Alang market remained unchanged, according to BigMint. HMS (80:20) prices were assessed at INR 33,800/t ex-yard. Although there was a rise in semi-finished steel prices in the previous trading session, stable demand for scrap has led suppliers to maintain their offers today.

Durgapur: Eastern region's steel market seemed to be losing buying confidence as was denoted by falling prices. Participants stated that buyers have sufficient material in hand . Sellers reduced offers as raw material prices declined amidst poor demand. Prices of billets decreased by INR 100/t d-o-d, settling at INR 39,200/t, while prices of rebar (Fe500) remained stable at INR 42,800/t.

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 market: Imported melting scrap prices at Nhava Sheva Port were at around $388-$397/t, which equates to approximately INR 35,146/t(including freight),while local scrap-HMS (80:20) prices in Mumbai fell by INR 100/t to INR 32,500/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 12,950/t.

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

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