India: BigMint's scrap index decreases by INR 100/t on subdued demand

• Steel market continues with lacklustre demand
  
  
• Buyers are waiting for some more drop in steel prices
  
  

BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market dropped by INR 100/t to INR 39,900/t DAP on 18 June, 2024. In recent days, the semi-finished and finished steel markets in the region have experienced minimal trading activity, prompting steelmakers to lower their prices. Additionally, buyers are holding off on purchases in anticipation of further price reductions.

Raw materials

In Mandi, the price of sponge iron (CDRI) experienced a notable decline of INR 400/t to INR 32,800/t, whereas the prices for steel-grade pig iron in Ludhiana significantly decreased by INR 500/t to INR 40,500/t today. Weekly analysis indicates a healthy decline of roughly INR 2,200/t in pig iron prices in the region, prompted by reduced supplier offers amid subdued demand and surplus supply.

Steel market

In Mandi Gobindgarh, steel ingot prices decreased by INR 200/t to INR 47,500/t during the price reporting and normalisation phase. Similarly, prices for semis in various major markets experienced declines ranging from INR 100 to INR 500/t, with the most notable drop of INR 500/t noted in the Raigarh market.

Overview of other markets

Significant declines were observed in the Raipur steel market today: billet prices fell by INR 400/t to INR 42,050/t, and rebar (Fe500) prices dipped by INR 300/t to INR 46,000/t. Meanwhile, steel grade pig iron prices decreased by INR 100/t to INR 39,250/t, and sponge (PDRI) prices slide by INR 200/t to INR 26,400/t.

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-$392/t, which equates to approximately INR 34,883/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained constant 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 15,650/t.

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