India: BigMint's ferrous scrap index falls for third straight day
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- Steel prices witness continued downtrend
- Scrap shortage persists in market
BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market dipped INR 300/tonne (t) to INR 41,300/t DAP on 6 June, 2024.
Today, the scrap market in Mandi Gobindgarh experienced a decline amidst declining semi-finished steel prices. The scrap industry is showing a moderate trend, likely due to ongoing shortage. Conversely, the ingot market observed subdued buying activity. Buyers in the scrap market are capitalising on reduced prices, while sellers are adopting a cautious approach.
Steel market
Steel ingot prices in Mandi Gobindgarh fell by INR 300/t to INR 47,000/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 100-400/t.
In Mandi, rebar (Fe500) fell by INR 200/t to INR 52,000/t today.
Overview of other markets
Alang: Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 200/t d-o-d on 6 Jun'24. According to BigMint's assessment, HMS (80:20) prices stood at INR 39,000/t ($467/t) ex-yard. Need-based trade activity was observed in semi-finished and finished steel in the region during yesterday's trading session. Additionally, moderate trade activity in scrap prompted suppliers to reduce their offers today.
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 35,599/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai inch down by INR 200/t to INR 36,300/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 16,350/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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