India: BigMint's ferrous scrap index remains stable-14 Aug'24

• Sponge iron prices remain unchanged d-o-d
  
  
• Finished steel prices remain rangebound
  
  

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market remained steady at INR 37,100/t DAP on 14 August 2024. In the mandi steel market, disparities in pricing between scrap buyers and sellers continued, exacerbated by a shortage of scrap supply.

A mill owner informed"Based on the current market trend, the near-term market seems to be range-bound, with ingot prices oscillating between INR 41,000/t to INR 42,000/t over the last two weeks".

Raw materials overview

Sponge iron (CDRI) prices decreased by INR 200/t to INR 29,800/t today. Meanwhile, in Ludhiana, pig iron (steel grade) prices remains unchanged at INR 40,000/t DAP.

Steel market trends

In the Mandi region, steel ingot prices sharply down by INR 300/t to INR 41,700/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets decreased by INR 100/t to INR 700/t. The Ludhiana steel market saw the most notable price drop. Prices decreased by around INR 700/t today.

Rebar (Fe500) prices in Mandi remained constant at INR 46,600/t today.

Overview of other markets

The Jalna market in Western India saw billet prices decline by INR 300/t to INR 40,700/t. Rebar and HMS 80:20 prices remained unchanged at INR 44,600/t and INR 32,600/t, respectively. Market sources indicate that finished steel demand is moderate, with sufficient scrap arriving at the mills. This is due to reduced rebar production and increased use of sponge iron, accounting for about 30-40% of consumption.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,600-5,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $378-$382/t, which equates to approximately INR 34,270/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 33,000/t today. In India, indicative prices of shredded scrap from Europe stood at $404-$408/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 13,900/t.

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