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India: BigMint's ferrous scrap index rises INR 500/t ($6/t) as steel prices edge up

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Melting Scrap

BigMint Bureau

127 Reads

2 Jul 2024, 18:26 IST

India: BigMint's ferrous scrap index rises INR 500/t ($6/t) as steel prices edge up

Trade momentum picks up in Punjab market

Prices of semis up INR 400/t d-o-d in Mandi

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market rose by INR 500/tonne (t) ($6/t) to INR 38,800/t DAP on 2 July, 2024. Trade activity in scrap picked up during today's session, with mills in Mandi Gobindgarh actively purchasing domestic scrap. The semi-finished steel market saw some spot bookings, and ingot prices increased by INR 400/t.

Raw materials

Sponge iron (CDRI) prices in Mandi increased by INR 100/t to INR 31,300/t. Similarly, pig iron (steel grade) prices in Ludhiana rose by INR 100/t to INR 40,700/t DAP.

Steel market

In the Mandi region, steel ingot prices rose by INR 400/t to INR 44,600/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased from INR 300/t to INR 700/t. The highest uptick was observed in the Ludhiana steel market - INR 700/t d-o-d.

Rebar (Fe500) prices edged up by INR 300/t to INR 49,200/t ex-works on improved demand in Mandi.

Overview of other markets

According to BigMint's assessment, ship-breaking melting scrap prices in Alang, Gujarat, stayed unchanged on 2 July. HMS (80:20) prices were assessed at INR 36,500/t ($437/t) ex-yard. Although prices of semi-finished steel fell in the last trading session, moderate buying interest from Bhavnagar-based IF steel mills resulted in suppliers keeping their offers stable.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,800/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$390/t, which equates to approximately INR 34,751/t (including freight), while local scrap, HMS (80:20), prices in Mumbai rose by INR 300/t to INR 34,000/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$415/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 14,500/t.