India: BigMint's ferrous scrap index falls for third consecutive day
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- Scrap prices move down by INR 800/t w-o-w in Mandi
- Subdued market condition amid muted buyers
BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market continued to decline for the third consecutive day. Scrap index fell by INR 200/tonne (t) to INR 40,800/t DAP on 12 June, 2024. The Mandi market saw a persistent decline in semi-finished steel prices, along with subdued purchasing interest from mills. This has created a challenging situation for local scrap traders, prompting them to lower prices and push their scrap into the market for sale. Moreover, previous bookings of imported scrap also reaching mills. In the region scrap prices dipped by INR 800/t w-o-w.
Raw materials
Sponge iron (CDRI) prices in Mandi decreased by INR 200/t to INR 34,100/t. Meanwhile, steel-grade pig iron prices in Ludhiana fell by INR 200/t to INR 42,500/t d-o-d.
Semis, finished steel
Steel ingot prices in Mandi Gobindgarh fell by INR 200/t to INR 46,500/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 50-300/t.
In Mandi, finished steel prices-rebar (Fe500) dropped by INR 100/t to INR 51,500/t today.
Overview of other markets
Mumbai's IF route rebar (Fe 500) prices remained stable d-o-d at INR 51,300/t exw. Due to an unclear market trend, buyers are restricting themselves from bulk bookings, hence the market has only seen need-based buying activity in finished steel. However, scrap (HMS 80:20) prices stand at INR 35,500/t DAP. Conversion spread from scrap to billet hovering at INR 9,800/t.
On 12 June , 2024, Alang, Gujarat, witnessed unchanged ship-breaking scrap prices. BigMint's assessment revealed INR 38,500/t ($461/t) ex-yard for HMS (80:20). Trade activity in semi-finished and finished steel surged yesterday, driven by demand, while suppliers opted to keep prices stable due to the limited availability of scrap caused by decreased ship dismantling activities.
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 $390-$395/t, which equates to approximately INR 35,177/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained unchanged at INR 35,500/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $415-$420/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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