India: BigMint's scrap index drops by INR 300/t amid fall in finished prices
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- Buying may increase amid restocking demand
- Sponge, pig iron prices show increase d-o-d
BigMint's domestic end-cutting scrap index tracking prices in the Mandi Gobindgarh market decreased by INR 300/tonne (t) ($3.60/t) to INR 38,300/t DAP on 1 July, 2024. Trade activity remained stable, even though semi-finished and finished steel prices dipped slightly amid average demand in the region.
"Steel mills in Mandi are expecting a moderate buying trend this week, with ingot prices slated to range between INR 44,000-44,500/t due to increased inquiries from traders as they are in restocking mode," a mill owner informed BigMint.
Raw materials overview
Sponge iron (CDRI) prices in Mandi rose by INR 200/t to INR 31,200/t. Meanwhile, pig iron (steel grade) prices in Ludhiana were up by INR 200/t to INR 40,600/t DAP.
Steel market overview
In the Mandi region, steel ingot prices fell by INR 200/t to INR 44,100/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets dipped by INR 150/t to INR 750/t. The highest decrease was observed in the Raipur steel market, by INR 750/t, d-o-d.
Rebar (Fe500) prices decreased by INR 300/t to INR 48,900/t ex-works.
Overview of other markets
In the Chennai market in southern India, billet and HMS 80:20 prices remained stable at INR 43,500/t and INR 32,900/t respectively, while rebar prices decreased by INR 200/t to INR 49,000/t. According to market sources, demand for finished steel is very slow, although scrap arrivals at mills are smooth. Mills are not significantly interested in imported scrap, as these are priced higher than domestic.
Price highlights
End-cutting, billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,800/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$389/t, which equates to approximately INR 35,160/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai moved up by INR 200/t to INR 33,700/t today. In India, indicative prices of shredded scrap from Europe stood at $408-$413/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 14,500/t.
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