India: BigMint's scrap index drops by INR 700/t ($8/t) amid muted steel demand

• Sponge prices fall by INR 400/t, pig iron inches down
  
  
• HMS (80:20) prices in Mumbai remain stable d-o-d

  BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market dipped by INR 700/tonne (t) ($8.38/t) to INR 37,500/t ($449/t) DAP on 8 July, 2024.
  
  

A mill owner informed: "The steel market experienced sluggish trade activities in both semi-finished and finished steel segments, leading to a decline in scrap prices. Buyers remained inactive throughout both halves of the trading session, suggesting that the market may continue to see further price drops in the near future. This trend highlights the ongoing challenges in the region's steel industry, with demand remaining weak and prices under pressure.

Raw materials overview

In Mandi, the price of sponge iron (CDRI) declined by INR 400/t ($5/t) to INR 30,300/t ($363/t). Meanwhile, steel-grade pig iron prices in Ludhiana fell by INR 50/t ($0.59/t) to INR 40,850/t ($489/t) DAP.

Steel market trends

In the Mandi region, steel ingot prices decreased by INR 600/t ($7/t) to INR 43,300/t ($519/t) during the price reporting and normalization phase. Meanwhile, prices in other key markets decreased by INR 200/t ($2/t) to INR 800/t ($10/t). The Ghaziabad steel market experienced the most significant drop, with prices declining by INR 800/t ($10/t) d-o-d.

Rebar(Fe500)prices moved down by INR 400/t ($5/t) to INR 48,300/t ($579/t) today in Mandi

Overview of other markets

As per BigMint's assessment, the prices for ship-breaking melting scrap in Gujarat's Alang dropped by INR 500/t ($6/t) on 8 July. HMS (80:20) was priced at INR 35,000/t ($419/t)/t) ex-yard. Yesterday's trading session saw reduced demand for semi-finished and finished steel in the area. This, coupled with restricted scrap trade activity, prompted suppliers to decrease their offers today

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,800/t ($66-69/t).

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$390/t, which equates to approximately INR 34,758/t ($416/t) (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 33,500/t ($401/t) today. In India, indicative prices of shredded scrap from Europe stood at $408-$412/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 13,650/t ($164/t).

To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here

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