India: BigMint's ferrous scrap index remains stable d-o-d - 25 Jul'24

• Mandi continues to see slower steel demand
  
  
• Raw material prices remain range-bound today
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market remained stable at INR 37,700/t DAP on 25 July, 2024.

"The Mandi market is facing a combination of slow steel demand and a shortage of scrap. Additionally, the bid-offer disparities between imported scrap buyers and sellers have led to a halt in imports. In the short term, the market appears to be slow, with an overall range-bound trend and limited fluctuations. Steel ingot prices are expected to remain between INR 42,000-43,000/t," a steel mill source informed BigMint.

Raw materials overview

Sponge iron (CDRI) prices in Mandi went up slightly by INR 100/t to INR 30,100/t. Similarly, pig iron (steel grade) prices in Ludhiana remained unchanged at INR 40,200/t DAP.

Steel market trend

In the Mandi region, steel ingot prices remained steady at INR 42,700/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets rose marginally by INR 100/t to INR 300/t. In the Ahmedabad market, semi-finished prices increased by INR 300/t d-o-d.

Rebar (Fe500) prices remained constant at INR 47,200/t today exw. Demand for finished steel has seen minimal trade activity, causing a substantial price reduction of INR 1,200/t w-o-w.

Overview of other markets

On 25 July, ship-breaking melting scrap prices in Alang, Gujarat, held steady d-o-d. BigMint assessed HMS (80:20) prices at INR 35,400/t ex-yard. The region saw average trade activity for semi-finished and finished steel in yesterday's session. Moreover, moderate buying inquiries from Bhavnagar-based induction furnace (IF) steel mills led suppliers to maintain stable offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,300/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$390/t, which equates to approximately INR 34,877/t (including freight), while local scrap, HMS (80:20), prices in Mumbai fell by INR 300/t to INR 33,200/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$415/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 13,400/t.

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

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