India: BigMint's ferrous scrap index rises INR 100/t d-o-d on 28 May'24

• Slight supply tightness support prices
  
  
• Finished steel market sees slight slowdown
  
  

BigMint's domestic end-cutting scrap index monitoring the Mandi Gobindgarh market marginally increased by INR 100/tonne (t) to INR 40,800/t DAP on 28 May, 2024. Prices rose fuelled by a shortage of scrap while mills grappled with subdued demand in the finished steel segment. Liquidity issues persisted in the key markets.

Today, mills encountered difficulties in sourcing scrap at reduced prices, while suppliers held on to their inventories, reluctant to sell at lower prices. Overall, domestic scrap prices in Mandi remained within a stable range.

Raw material prices

Sponge iron (CDRI) prices remained stable at INR 34,500/t in Mandi, while steel-grade pig iron prices in Ludhiana remained stable at INR 43,000/t.

Steel market

Steel ingot prices in Mandi Gobindgarh rose by INR 100/t to INR 46400/t DAP during the price reporting and normalisation phase. Similarly, prices in other markets witnessed a decrease of INR 100/t-INR 300/t.

Rebar (Fe500) prices remains unchanged at INR 51,300/t today. A notable decrease of around INR 700/t was observed in the Rourkela steel market.

Overview of other markets

In Chennai, prices for billet, rebar, and HMS 80:20 remained stable today, assessed at INR 46,500/t, INR 51,800/t, and INR 35,200/t, respectively. Demand for semi-finished and finished steel was limited in today's trading session, while scrap arrivals at the mills were moderate. According to market sources, "Some mill owners are procuring billet from Bellary, Karnataka, at around INR 46,000/t on a DAP basis, so billet prices may fall in the coming days."

Price highlights

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was assessed 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 35,471/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai decreased by INR 200/t to INR 36,300/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $415-$418/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 16,000/t.

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