India: BigMint's ferrous scrap index improves by INR 200/t on 13 Aug'24

• Sponge iron prices inch up by INR 200/t d-o-d
  
  
• Finished steel prices improve by INR 300/t today
  
  

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market increased slightly by INR 200/t to INR 37,100/t DAP on 13 August 2024.

In the mandi steel market, demand remained moderate as scrap prices edged up slightly due to a persistent shortage. Additionally, with imported scrap not available, mills are turning to sponge iron for their steel production processes. Small and medium-scale mills continue to face challenges in sourcing scrap, as suppliers are prioritising large volume deals with bigger buyers.

Raw materials overview

Sponge iron (CDRI) prices increased by INR 200/t to INR 30,000/t today. Meanwhile, in Ludhiana, pig iron (steel grade) prices remained constant at INR 40,000/t DAP.

Steel market trends

In the Mandi region, steel ingot prices moved up by INR 200/t to INR 42,000/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased by INR 100/t to INR 600/t. The Muzaffarnagar steel market saw the most notable price increase. Prices increased by around INR 600/t.

Rebar (Fe500) prices in Mandi increased by INR 300/t to INR 46,600/t today, reflecting an uptick in trade activity in the region.

Overview of other markets

On 13 August, 2024, ship-breaking scrap prices in Gujarat's Alang market saw a modest increase of INR 100/t d-o-d, according to BigMint's evaluation. HMS (80:20) was priced at INR 33,400/t ex-yards. Meanwhile, prices of semi-finished and finished steel remained steady in the previous trading session. The uptick in scrap trade activities led suppliers to raise their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,800-5,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $378-$382/t, which equates to approximately INR 34,272/t (including freight), while local scrap, HMS (80:20), prices in Mumbai up by INR 500/t to INR 33,000/t today. In India, indicative prices of shredded scrap from Europe stood at $405-$410/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 stood at INR 14,100/t.

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

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