- Sponge iron prices rise by INR 200/t today
- Finished steel prices drop INR 100/t d-o-d
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market remained steady at INR 37,000/t DAP on 29 August, 2024.
Today's market was characterized by a noticeable mismatch between sellers' and buyers' expectations. Sellers were hopeful about an uptick in steel ingot prices, while buyers anticipated a potential drop. In this environment, many scrap traders adopted a wait-and-see approach, hesitant to make moves until market conditions became clearer. Meanwhile, mills with immediate needs are purchasing scrap at the prices set by traders, reflecting a current imbalance in market dynamics.
Raw materials overview
Sponge iron (CDRI) prices in Mandi have increased by INR 200/t to INR 30,000/t, indicating a stable market trend today. In contrast, the price of pig iron (steel grade) in Ludhiana continues to be stable at INR 39,500/t DAP.
Steel market
In the Mandi region, steel ingot prices remained un-changed at INR 41700/t during today's price reporting and normalisation phase. However, prices in other key markets increased by INR 100 to INR 200/t. Today in Mandi, Rebar (Fe500) prices fell by INR 100/t to INR 46,400/t as per weekly basis prices dipped by INR 500/t witnessed slow demand.
Overview of other markets
In the Chennai market, located in South India, billet and rebar prices remain steady at INR 41,500/t and INR 46,200/t, respectively. However, HMS 80:20 has seen a slight dip, decreasing by INR 100/t to INR 32,100/t. Market sources suggest that the demand for both semi-finished and finished steel is subdued, while the supply of domestic scrap is moderate. Due to the high offers for imported scrap, mills are opting out of booking any at this time.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,700-5,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $370-$375/t, which equates to approximately INR 33,662/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 32,500/t. In India, indicative prices of shredded scrap from Europe stood at $388-$395/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 13,600/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