India: BigMint's ferrous scrap index remains stable amid moderate trade
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On 13 March, 2024, BigMint's domestic scrap (end-cutting) index held firm at INR 37,500/t DAP Mandi Gobindgarh. However, the scrap procurement activity faced challenges due to discrepancies between buyers and sellers, leading to only a few mills acquiring scrap at equitable prices.
Semis' market
Steel ingot prices in Mandi held steady at INR 42,800/t d-o-d during reporting and price normalisation phase. Conversely, prices in other significant markets experienced a decline ranging from INR 100/t to INR 300/t today.
Market scenario
"The Mandi steel market persists in its range-bound pattern, echoing recent weeks' trends. Forecasts anticipate minimal changes in the near future. Moreover, steel makers anticipate a moderate decline or leveling off in the market," an official representing a mill informed BigMint.
A scrap supplier said: "Due to easy scrap availability in the region, Mandi steelmakers anticipate a drop in domestic steel scrap prices, while suppliers feel pressure from the mills' pricing stance."
Raw material price update
In Mandi, the prices of sponge iron (CDRI) held steady at INR 30,900/t, while in Ludhiana, pig iron (steel grade) prices remained unchanged at INR 39,000/t on a delivered-at-plant (DAP) basis.
Imported scrap market
India's steel market faced a dull outlook, but with limited material available, there's a small chance this month for frequent bookings if buyers decide to restock their scrap inventory.
Overview of other markets
According to BigMint's assessment, ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 100/t on 13 March, 2024, with HMS (80:20) prices evaluated at INR 33,500/t ex-yard. In yesterday's trading session, semi-finished steel prices dropped by around INR 200-300/t across the region. Suppliers adjusted their offers downward today due to discrepancies in scrap bids and offers.
Raipur market witnessed average trade activity in semi-finished and finished steel, In the region billet prices slightly fell by INR 50/t to INR 39,950/t, while rebar prices remained stable at INR 43,500/t today.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic vs imported scrap: The imported melting scrap prices at Nhava Sheva Port stood at approximately $370/t-$375/t, equivalent to around INR 33,254/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai remained constant, settling at INR 33,500/t d-o-d.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,350/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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