India: BigMint's ferrous scrap index slips to 10-week low

• Scrap prices fall in Mandi on soft demand
  
  
• Pig iron prices drop INR 1,100/t d-o-d in Ludhiana
  
  

BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market fell by INR 300/t to INR 40,000/t DAP on 17 June, 2024. Weekly scrap prices have seen a reduction of INR 1,200/t, primarily due to subdued demand from semi-finished and finished steel sectors. Additionally, mills utilising imported scrap contributed to slower demand in the domestic scrap market this week leading to prices hitting a 10-week low today.

Raw materials

In Mandi, the price of sponge iron (CDRI) experienced a notable decline of INR 100/t to INR 33,200/t, whereas prices for steel-grade pig iron in Ludhiana decreased by INR 1,100/t to INR 41,000/t today. Low demand was observed over the past week owing to high supply and low demand in Durgapur as prices dipped INR 1,100/t w-o-w.

Steel market

Steel ingot prices in Mandi Gobindgarh fell by INR 200/t to INR 47,700/t during the price reporting and normalisation phase. Prices of semis in other major markets witnessed a decline, ranging from INR 100-550/t. The most significant drop of INR 500/t was observed in the Mandi Gobindgarh market.

Overview of other markets

In Alang, Gujarat, ship-breaking melting scrap prices held steady on 17 June, 2024. HMS (80:20) traded at INR 37,700/t ($451/t) ex-yard. Sources indicated that trade would be limited due to the Eid festival, which, combined with reduced activity in semi-finished and finished steel during the previous trading session, prompted scrap suppliers to maintain their pricing unchanged today.

Price highlights

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $390-$396/t, which equates to approximately INR 35,278/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained stable at INR 35,000/t today. In India, indicative prices of shredded scrap from Europe stood at $415-$420/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 15,850/t.

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

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