India: BigMint's ferrous scrap index slides by INR 400/t amid slow steel demand -8 Aug'24

• Alternate raw material prices stable in Mandi
  
  
• Finished, semis prices dip INR 1,100-1,350/t w-o-w
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market fell by INR 400/tonne (t) to INR 36,900/t DAP on 8 August, 2024.

The Mandi steel market continues to face significant hurdles as slow demand and an unsupportive environment prevail. Steel mills in the region are holding out hope for a positive shift, but the current landscape remains tough. Persistent scrap shortages and ongoing disparities in imported scrap prices are causing major concerns for the industry. Adding to the difficulties, production cuts and liquidity challenges have become a pressing issue for mills, compounding their struggles. With these obstacles in play, the market outlook remains uncertain, leaving mills in a challenging position as they navigate these trying times.

Raw materials overview

Sponge iron (CDRI) prices held steady at INR 30,000/t today amid moderate trade activity, as mills boosted its use in the charge mix for steelmaking. Meanwhile, in Ludhiana, pig iron (steel grade) prices remained unchanged d-o-d at INR 40,500/t DAP.

Steel market trends

In the Mandi region, steel ingot prices decreased by INR 300/t to INR 41,900/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets fell by INR 100/t to INR 300/t, while ingot prices dipped by INR 1,350/t w-o-w.

Rebar (Fe500) prices slightly rose by INR 100/t to INR 46,900/t exw in Mandi. As per weekly basis prices moved down by INR 1,100/t amid subdued demand.

Overview of other markets

Mumbai: Prices of rebar (Fe 500) from the IF mills in the Mumbai region were up marginally d-o-d by INR 100/t at INR 44,800/t exw. Moderate trade activity was seen in the market for finished steel. The current pricing of scrap (HMS 80:20) is INR 32,700/t DAP. The conversion spread between scrap and billets is around INR 8,600/t.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,800-5,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $380-$388/t, which equates to approximately INR 34,778/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained constant at INR 32,700/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 14,000/t.

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

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - support@bigmint.co