India: BigMint's ferrous scrap index falls by INR 200/t on muted demand

• Steel prices continue to slide in Mandi
  
  
• Alang ship breaking scrap prices remain stable
  
  

BigMint's domestic end-cutting scrap index fell by INR 200/tonne (t) to INR 41,000/t DAP on 11 June 2024.

Today, the mandi market saw a slowdown in trade activity due to weak demand in the semis and finished steel sectors. Buyers remained cautious and adopted a wait and see strategy, which resulted in subdued trading.

Raw materials

Sponge iron (CDRI) prices in Mandi moved down by INR 200/t to INR 34,300/t, while steel-grade pig iron prices in Ludhiana remained stable at INR 42,700/t today.

Semis, finished steel

Steel ingot prices in Mandi Gobindgarh fell by INR 200/t to INR 46,700/t during the price reporting and normalisation phase. On the other hand, prices of semis in other major markets witnessed a decline in the range of INR 200-600/t.

"Steel manufacturers are anticipating some positive developments in the near term as Mandi ingot prices hover between INR 46,600 and INR 47,000/t keeping the market range-bound," a mill owner informed BigMint.

Overview of other markets

Alang, Gujarat, witnessed stable ship-breaking scrap prices on 11 June, as per data from BigMint. HMS (80:20) commanded a price of INR 38,500/t ($461/t) ex-yard. Suppliers refrained from adjusting prices despite a slight decrease in semi-finished steel prices, motivated by satisfactory demand from Bhavnagar's IF steel mills.

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 $395-$400/t, which equates to approximately INR 35,630/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai fell by INR 500/t to INR 35,500/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $420-$425/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 stands at INR 16,450/t.

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

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