India: BigMint's ferrous scrap index rises by INR 300/t d-o-d - 6 Nov

• Steel mills operating at stable pace, with routine scrap purchases
  
  
• Rise in finished steel offers expected to keep scrap prices supported
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed up by INR 300/tonne (t) d-o-d to INR 36,200/t ($429/t) DAP on 6 November 2024. Most steel mills operated at a consistent pace, with routine scrap purchases, maintaining production levels of 90-100%; however, medium-sized mills functioned at sub-80% capacity. The charge mix for steel production currently consists of 80-85% scrap, with the remainder being sponge iron.

A recent boost in finished steel tags from primary mills has lifted market sentiment, with expectations of a stable trend and potential price increases in the coming week.

Raw materials scenario

Today, sponge iron (CDRI) prices in Mandi edged up by INR 200/t to INR 31,800/t DAP, while pig iron (steel-grade) offers in Ludhiana increased by INR 200/t to INR 38,800/t DAP.

Steel market overview

Steel ingot prices rose by INR 200/t to INR 42,200/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other major markets moved up by INR 100-600/t d-o-d, with the most notable increase of approximately INR 600/t occurring in the semi-finished steel market of Muzaffarnagar and Ghaziabad.

Rebar (Fe 500) prices in Mandi jumped by INR 300/t to INR 46,600/t exw amid moderate trading activity.

Overview of other markets

Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 500/t d-o-d on 6 November 2024, as per BigMint's assessment. HMS (80:20) tags were assessed at INR 34,000/t ($404/t) exy. Semi-finished steel prices in the region rose by INR 300-400/t during yesterday's trading session. This, along with active buying inquiries for scrap from Bhavnagar-based mills, prompted suppliers to raise their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,900-6,100/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,700/t (including freight). Local scrap HMS (80:20) prices in Mumbai up by INR 700/t d-o-d to INR 32,700/t DAP. In India, indicative prices of shredded from Europe stood at $390-$395/t CFR Nhava Sheva.

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,200/t.

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

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