India: BigMint's ferrous scrap index remains stable - 9 Jul'24

• Scrap shortage persists in Mandi market
  
  
• Alang scrap prices drop INR 200/t d-o-d
  
  

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market remained stable at INR 37,500/t DAP on 9 July, 2024.

A mill owner informed: "The Mandi market faced a scrap shortage as trade activity in semi-finished and finished steel remained subdued. Mills are turning to domestic scrap due to the high cost of imports. Additionally, small-scale steel mills are operating for just 10 to 12 hours daily because of ongoing scrap shortage and price disparities in the region".

Raw materials overview

In Mandi, the price of sponge iron (CDRI) declined by INR 300/t to INR 30,000/t. Meanwhile, steel-grade pig iron prices in Ludhiana rose by INR 150/t to INR 41,000/t DAP.

Steel market trends

In the Mandi region, steel ingot prices edged up by INR 100/t to INR 43,300/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased by INR 100/t to INR 200/t.

Rebar (Fe500) prices decreased by INR 300/t to INR 48,000/t exw in Mandi.

Overview of other markets

On 9 July, ship-breaking melting scrap prices in Gujarat's Alang market dropped INR 200/t, as per BigMint's assessment. HMS (80:20) is now priced at INR 34,800/t ex-yard. Yesterday's trading session witnessed need-based activity for semi-finished and finished steel. The persistent bid-offer disparity for scrap prompted suppliers to lower their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,800/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$390/t, which equates to approximately INR 34,764/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 33,500/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$412/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 13,700/t.

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

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