India: BigMint's ferrous scrap index up INR 400/t on uptick in steel prices
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- Raw material prices rise INR 200/t
- Semi-finished steel prices up INR 300/t
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 400/t to INR 36,600/t DAP on 7 November 2024.Today, the Mandi and Ludhiana steel markets experienced spot demand, with scrap prices rising by INR 300-400/t. Semi-finished and finished steel prices also saw an increase of INR 300/t as steel demand strengthens.
A source informed BigMint: "The major mills are actively procuring scrap in substantial volumes as demand surges, prompting suppliers to maintain higher offer levels. If this demand trend continues, Mandi scrap prices may rise by an additional INR 500/t by tomorrow".
Raw materials scenario
Today, sponge iron (CDRI) prices in Mandi rose by INR 200/t to INR 32,000/t DAP, while pig iron (steel-grade) prices in Ludhiana increased by INR 200/t to INR 39,000/t DAP.
Steel market overview
Steel ingot prices in Mandi edged up by INR 300/t to INR 42,400/t DAP during today's price reporting and normalisation. Semi-finished steel prices across markets similarly rose by INR 50/t to INR 600/t compared to the previous day. The Ludhiana semi-finished steel market saw a notable increase of INR 600/t today, driven by strong, active demand.
Today, rebar (Fe 500) prices in Mandi jumped by INR 300/t to INR 46,900/t exw. Trade activity also showed an uptick compared to yesterday.
Overview of other market
On 7 Nov '24, ship-breaking melting scrap prices in Alang, Gujarat, held steady d-o-d, with HMS (80:20) priced at INR 34,000/t ex-yard, as per BigMint's assessment. Moderate trading was seen in semi-finished and finished steel, and consistent scrap buying from Bhavnagar mills led suppliers to keep prices unchanged.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,800-6,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-370/t, which equates to approximately INR 33,408/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable at INR 32,700/t DAP. In India, indicative prices of shredded from Europe stood at $390-$395/t CFR Nhava Sheva.
In India, imported scrap buying picked up slightly today as buyers returned with renewed interest after the Diwali and Chhath Puja holidays. The domestic steel market also strengthened, with key markets driving prices up by INR 300-500/t on a d-o-d basis.
New Zealand and Australian HMS (80:20) offers were heard at $370-375/t CFR, with HMS (90:10) and handloaded scraps from the Kuwait and South Africa were at around $380/t CFR.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,100/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
