India: BigMint's ferrous scrap index remains stable for second consecutive day

• Scrap prices remain rangebound in Mandi
  
  
• Pig iron prices in Ludhiana increase by INR 200/t
  
  

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market remained stable for the second consecutive day at INR 37,500/t DAP on 10 July, 2024. The Mandi steel market experienced scrap shortage as mills maintained moderate purchases. Buyers were reluctant to book imported scrap due to price viability issues, despite price disparities seen in major domestic markets.

Raw materials

In Mandi, the price of sponge iron (CDRI) remained constant d-o-d at INR 30,000/t. Meanwhile, steel-grade pig iron prices in Ludhiana rose by INR 200/t to INR 41,200/t DAP.

Steel market trends

Steel ingot prices in Mandi Gobindgarh remined stable at INR 43,200/t today during the price reporting and normalisation phase. In the first half of trading today, the semi-finished steel market experienced some upward movement due to spot enquiries. However, the second half saw a slowdown but prices remained firm.

Overview of other markets

BigMint's assessment reveals that ship-breaking melting scrap prices in Gujarat's Alang went up by INR 400/t on 10 July. HMS (80:20) prices were at INR 35,200/t ($422/t) ex-yard. An increase in trade activities for semi-finished and finished steel was observed late yesterday which, along with robust buying inquiries for scrap, led suppliers to raise their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$388/t, which equates to approximately INR 34,604/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-$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 13,800/t.

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

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