India: BigMint's ferrous scrap index remains constant -13 June

• Scrap market sees a range-bound trend in Mandi
  
  
• Mills eyeing on alternate raw material in the region
  
  

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market remained stable at INR 40,800/t DAP on 13 June, 2024. The market in the region exhibited moderate trading, with mills staying committed to their standard scrap procurement practices. Moreover, high temperatures have led to Mandi mills operating at approximately 80% capacity, with the extreme weather disrupting regular operations.

Raw materials

In Mandi, sponge iron (CDRI) prices witnessed a decrease of INR 100/t, reaching INR 34,000/t. On the other hand, due to a slight shortage of scrap and the availability of sponge in discounted prices, mills in Mandi are procuring sponge iron in decent volumes.

Steel-grade pig iron prices in Ludhiana experienced a d-o-d decline of INR 200/t to INR 42,300/t.

Semis, finished steel

Steel ingot prices in Mandi Gobindgarh remained stable at 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 100-INR 700/t. The Rourkela steel market witnessed a significant decline, with prices sliding by around 700/t d-o-d.

Today in the region, the semi-finished steel market witnessed decent trade activity, whereas the finished steel market remained subdued.

In Mandi, finished steel prices rebar (Fe500) dropped by INR 300/t to INR 51,300/t today, prices experienced a decrease of approximately INR 800/t on a weekly basis.

Overview of other markets

BigMint's assessment on 13 June, 2024, revealed a dip of INR 300/t ($3.6/t) in ship-breaking melting scrap prices at Gujarat's Alang market. HMS (80:20) prices were marked at INR 38,200/t ($457/t) ex-yard. The local steel market experienced a decrease of approximately INR 200-300/t in semi-finished and finished steel prices amidst moderate trade engagements, prompting suppliers to revise their pricing downwards. HMS (80:20) scrap prices dipped by INR 800/t as per weekly basis.

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 35,197/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 16,250/t.

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

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