India: BigMint's scrap index drops by INR 100/t amid fall in steel prices-23 August
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- Sponge iron prices remain constant d-o-d
- Semis, finished steel markets witness drop
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market continued to drop for the second consecutive day by INR 100/tonne (t) to INR 37,200/t DAP on 23 August, 2024.
In the Mandi steel market, there was limited demand for both semi-finished and finished steel products. Despite this, mills are maintaining a moderate level of scrap procurement. However, the purchase of imported scrap remained sluggish in the region.
Raw materials overview
In Mandi, sponge iron (CDRI) prices held steady at INR 30,000/t d-o-d, reflecting moderate demand. Meanwhile, in Ludhiana, pig iron (steel grade) prices decreased by INR 100/t to IN 39,700/t DAP.
Steel market
In the Mandi region, steel ingot prices dipped by INR 200/t to INR 41,700/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets fell by INR 100/t to INR 500/t. In the Ahmedabad market, semi-finished steel prices decreased by INR 500/t d-o-d.
Rebar (Fe500) prices decreased by INR 300/t to INR 46,600/t, ex-works, despite a lacklustre demand.
Overview of other markets
In Western India's Jalna market, billet and rebar prices held steady at INR 40,700/t and INR 45,000/t, while HMS 80:20 prices fell by INR 100/t to INR 32,600/t. Market sources informed that finished steel demand was average, with moderate scrap supply in mills. A scrap trader noted that at current prices, securing scrap is challenging, as mills have already booked significant quantities at higher rates, leading to a reduction in their purchase prices.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,500-5,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $370-$371/t, which equates to approximately INR 33,328/t (including freight), while local scrap, HMS (80:20), prices in Mumbai decreased by INR 300/t to INR 32,500/t on Friday. In India, indicative prices of shredded scrap from Europe stood at $393-$397/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 13,700/t.
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