India: BigMint's scrap index edges up by INR 100/t d-o-d amid range-bound market- 21 Aug'24

• Sponge iron prices remain steady d-o-d in Mandi
  
  
• Finished steel prices sharply up amid average trade
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market rose by INR 100/t to INR 37,600/t DAP on 21 August, 2024. Overall, the Mandi steel market saw moderate activity today. This is because steelmakers expect no major fluctuations in the market throughout August.

A mill owner informed BigMint: "Today, the steel market in Mandi is facing weaker buying conditions compared to yesterday. Moreover, imported steel purchases remained inactive, adding to the overall sluggish market. The disparity between bid and offer prices between buyers and sellers continued to persist."

Raw materials overview

Sponge iron (CDRI) prices in Mandi have remained steady at INR 30,000/t for the past three days, reflecting increased consumption by steel mills. Conversely, pig iron (steel grade) prices in Ludhiana have consistently been priced at INR 40,000/t DAP for the past seven days.

Steel market

In the Mandi region, steel ingot prices remained unchanged at INR 42,100/t during today's price reporting and normalisation phase. However, prices in other key markets increased by INR 50 to INR 250/t. Rebar (Fe500) prices in Mandi saw a slight increase of INR 100/t, reaching INR 46,900/t. Demand for finished steel in the region remained average.

Overview of other markets

Today, the Alang market in Gujarat saw a d-o-d increase of INR 200/t in ship-breaking melting scrap prices. HMS (80:20) prices were assessed at INR 34,400/t ex-yards. The price hike was attributed to moderate demand for semi-finished and finished steel, coupled with increased scrap buying activity from mills in Bhavnagar, which led suppliers to raise their offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,600-5,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $370-$375/t, which equates to approximately INR 33,664/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 33,200/t. In India, indicative prices of shredded scrap from Europe stood at $395-$398/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 13,850/t.

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

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