India: BigMint's ferrous scrap index falls for 5th consecutive day
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- Sponge iron prices dip INR 300/t d-o-d
- Semis, finished steel prices drop INR 200-300/t
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined by INR 300/tonne (t) d-o-d to INR 35,900/t DAP on 29 October 2024. The market remains subdued in terms of steel demand in Mandi. Scrap prices have been sliding for the last five days, as mills are only procuring scrap based to meet immediate requirements given that their inventory levels of both scrap and finished steel are currently adequate.
Raw materials scenario
Today, prices of sponge iron (CDRI) in Mandi fell by INR 300/t to INR 32,200/t DAP. Meanwhile, pig iron (steel-grade) in Ludhiana remained stable at INR 38,500/t DAP today.
Steel market overview
Today, steel ingot prices in Mandi dipped INR 300/t to INR 41,900/t DAP during the price reporting and normalisation phase. Prices of semi-finished steel across markets decreased by INR 100/t d-o-d to INR 300/t.
Rebar (Fe 500) prices in Mandi decreased by INR 200/t to INR 46,700/t exw today amid limited trade.
Overview of other markets
On 29 October, ship-breaking melting scrap prices in Alang, Gujarat, increased by INR 300/t compared to the previous day, with HMS (80:20) priced at INR 33,500/t ex-yards, per BigMint's evaluation. The trading session yesterday saw a rise in deals for semi-finished and finished steel, while strong buying inquiries for scrap led suppliers to boost their offers today.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 6,000-6,100/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,725/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable at INR 32,300/t DAP. In India, indicative prices of shredded from Europe stood at $390-$395/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,150/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
