India: BigMint's ferrous scrap index remains stable on 31 May'24

• Prices of scrap, semis remain rangebound
  
  
• Scrap prices in Alang rise INR 300/t
  
  

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market remained stable at INR 41,300/t DAP on 31 May, 2024. Moderate trade activity was seen in the region today, with mills persisting with their routine scrap purchases. Moreover, ongoing scrap shortages and liquidity concerns have kept prices range-bound over the past week.

Raw material prices

Sponge iron (CDRI) prices increased by INR 200/t to INR 34,800/t in Mandi, while steel-grade pig iron prices in Ludhiana remained stable at INR 42,800/t today.

Steel market

In Mandi, steel ingot prices remained unchanged d-o-d at INR 47,000/t during reporting and price normalisation. Similarly, prices in key markets also witnessed an increase, ranging from INR 100/t to INR 400/t today. The Muzaffarnagar market has experienced a substantial surge of about INR 400/t d-o-d, coupled with improved trading.

Prices of rebar (Fe500) rose by INR 300/t, hitting INR 51,900/t. This uptick in price is backed by substantial trade engagements in the market.

Overview of other markets

Gujarat's Alang witnessed a notable rise in ship-breaking melting scrap prices by INR 300/t on 31 May. The assessment indicated HMS (80:20) prices at INR 38,800/t ($466/t) ex-yard. Regional semi-finished steel prices increased in the previous trading day. Additionally, robust buying enquiries from induction furnace mills in Bhavnagar, Gujarat, drove scrap suppliers to raise their offers.

Price highlights

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $395-$400/t, which equates to approximately INR 35,552/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained stable at INR 36,500/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $413-$416/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 stands at INR 16,250/t.

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