India: BigMint's ferrous scrap index rises INR 400/t d-o-d amid supply concerns - 8 Oct
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- Sponge iron prices up by INR 200/t
- Semis market improves by INR 350/t
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed up by INR 400/tonne (t) d-o-d to INR 39,300/t DAP on 8 October 2024.
In the current market, scrap suppliers are facing challenges due to GST checks, due to which mills are purchasing scrap at lower levels, on a need-only basis. The tightening availability of scrap, as well as an improvement in steel ingot prices by around INR 400/t, pushed suppliers to raise their prices.
Raw materials overview
In the Mandi market, sponge iron (CDRI) prices increased by INR 200/t to INR 33,500/t DAP. Conversely, in Ludhiana, pig iron (steel-grade) prices were steady at INR 40,300/t DAP.
Steel market overview
In the Mandi region, steel ingot prices increased by INR 350/t to INR 44,600/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other key markets rose by INR 100/t to 800/t, with the most significant increase of approximately INR 800/t d-o-d seen in Rourkela's semi-finished steel cluster.
Rebar (Fe 500) prices in Mandi moved up INR 100/t to INR 48,900/t exw amid moderate trading activity.
Overview of Mumbai's steel market
Prices of induction furnace (IF) route rebars (Fe 500) in Mumbai remained stable at INR 49,700/t exw. Moderate trade activity was seen in the market for finished steel. Current prices of scrap (HMS 80:20) are at INR 34,000/t DAP. The conversion spread between scrap and billets was at around INR 11,000/t.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $380-$385/t, which equates to approximately INR 34,528/t (including freight). Local scrap HMS (80:20) prices in Mumbai remained stable at INR 34,000/t DAP. In India, indicative prices of shredded scrap from Europe stood at $400-$405/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 13,150/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
