India: BigMint's ferrous scrap index falls for fifth consecutive day
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- Scrap prices slide by INR 1,100-1,400/t in Punjab
- Minimal trade activity in semi-finished, finished steel
BigMint's domestic end-cutting scrap index fell by INR 300/t to INR 39,600/t DAP in Mandi Gobindgarh market on 19 June, 2024. Scrap prices in the region have fallen for the fifth consecutive day. Recent trading in semi-finished and finished steel segments in the region have been sluggish, prompting steelmakers to slash their prices. Furthermore, buyers are delaying procurement in hopes of additional price reductions. Additionally, there is anticipated to be sufficient raw material supply in the area. Scrap prices in the Punjab steel market decreased by INR 1,100-1,400/t w-o-w.
Raw materials
Sponge iron (CDRI) prices in Mandi dropped by INR 600/t to INR 32,200/t, while steel-grade pig iron prices in Ludhiana stayed steady at INR 40,500/t today. Suppliers responded to sluggish demand from mills by lowering their offers for sponge iron.
Steel market
In Mandi Gobindgarh, the price of steel ingots declined significantly by INR 300/t to INR 45,200/t during the pricing normalisation period. Meanwhile, prices of semis in major markets experienced declines ranging from INR 100 to INR 800/t, with the Jaipur steel market witnessing the most substantial drop of INR 800/t today.
In the region rebar(Fe500) prices decreased by INR 500/t to INR 50,000/t.
Overview of other markets
In Gujarat's Alang market on 19 June, 2024, ship-breaking scrap prices fell by INR 200/t ($2.4/t) from the previous day. BigMint's latest assessment revealed that HMS (80:20) prices were at INR 37,300/t ($447/t) ex-yard. There was notable trade activity in semi-finished and finished steel during the recent trading session, prompting suppliers to adjust their scrap pricing downwards in response to moderate demand.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $390-$395/t, which equates to approximately INR 35,153/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai fell by INR 500/t to INR 34,500/t today. In India, indicative prices of shredded scrap from Europe stood at $415-$418/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 15,650/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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