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India: BigMint's ferrous scrap index rises by INR 300/t ($3.60/t) d-o-d

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Melting Scrap

BigMint Bureau

175 Reads

20 May 2024, 18:33 IST

India: BigMint's ferrous scrap index rises by INR 300/t ($3.60/t) d-o-d

Moderate trading in semi-finished, finished markets

Mandi mills engage in routine operations

BigMint's domestic steel end-cutting scrap index for Mandi Gobindgarh rose by INR 300/tonne (t) to INR 41,200/t DAP. Scrap prices experienced a daily increase of INR 300-400/t in mandi today, attributed to moderate trading in semi-finished and finished markets. Ingot prices had dropped in yesterday's session but rebounded today with spot bookings, stabilizing the market within a similar range to yesterday.

Raw material prices update

Prices of sponge iron (CDRI) in Mandi stayed consistent at INR 35,200/t, with no fluctuations observed. Similarly, pig iron (steel grade) prices in Ludhiana remained unchanged at INR 43,500/t, based on a delivered-at-plant (DAP) basis.

Steel market

In Mandi, steel ingot prices rose by INR 200/t, reaching INR 46,900/t during reporting and price normalisation. Similarly, prices in various significant markets also witnessed an increase, ranging from INR 200/t to INR 300/t today. In Mandi, mills are engaged in routine operations without any sales pressure, as there was no shortage of raw materials observed in the major market. However, there was a slow arrival of some special grade scrap in the region.

Overview of other markets

Alang, Gujarat saw consistent ship-breaking melting scrap prices on 20 May, 2024, with no fluctuations observed. BigMint's assessment revealed HMS (80:20) prices holding firm at INR 38,800/t ($466/t) ex-yard. The region experienced stable prices for semi-finished and finished steel during the last trading session, alongside moderate trade activities for scrap, prompting suppliers to retain prices at their current levels.

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 $400-$405/t, which equates to approximately INR 35,940/t (including freight),while local scrap-HMS (80:20) prices in Mumbai remained unchanged at INR 36,000/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $415-$420/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 15,050/t.