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

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Melting Scrap

BigMint Bureau

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16 Aug 2024, 19:04 IST

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

Sponge iron prices remain constant d-o-d

Finished steel prices see a marginal drop

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market remained steady at INR 37,100/t DAP on 16 August 2024, marking its third consecutive day at this level. Mandi steel market mills continued with moderate purchases. Buyers were hesitant to book imported scrap due to concerns about price viability, despite price disparities in major markets.

"Many scrap suppliers are now focusing on large-volume transactions and partnering with mills that offer prompt payment. At the same time, these suppliers are facing difficulties in meeting demand of Mandi buyers due to ongoing supply shortages," a mill official informed BigMint.

Raw materials overview

Sponge iron (CDRI) prices remained constant in Mandi at INR 29,800/t d-o-d. Meanwhile, in Ludhiana, pig iron (steel grade) prices remained unchanged at INR 40,000/t DAP.

Steel market trends

In the Mandi region, steel ingot prices remained stable at INR 41,700/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets decreased by INR 50/t to INR 200/t.

Today, rebar (Fe500) prices in Mandi fell by INR 100/t to INR 46,500/t. However, w-o-w rebar prices have remained steady.

Overview of other markets

Prices of rebar (Fe 500) on the Mumbai IF-route remained stable d-o-d at INR 45,100/t exw. Limited trading was seen in the market for finished steel. The current pricing of scrap (HMS 80:20) stood at INR 33,000/t DAP. Conversion spread between scrap and billet was around INR 7,900/t.

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 $375-$380/t, which equates to approximately INR 34,091/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 $400-$405/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.