India: BigMint's scrap index edges up by INR 100/t d-o-d in range-bound market- 4 Sept'24

• Alternate raw material prices unchanged d-o-d
  
  
• Semis, finished steel demand remains moderate
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market rose by INR 100/t to INR 37,000/t DAP on 4 September. Today, the Mandi steel market experienced moderate activity, as steelmakers anticipate steady buying trends for the rest of the week. Additionally, imported scrap buyers hold back offers due to discrepancies in bid-offers and are currently focusing on domestic scrap.

Raw materials overview

Sponge iron (CDRI) prices remained stable at INR 30,000/t today. Meanwhile, in Ludhiana, pig iron (steel grade) prices held steady at INR 39,300/t DAP.

Steel market trends

In the Mandi region, steel ingot prices remained stable at INR 41,700/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets remained unchanged today, with only minor fluctuations of 100-200/t.

Rebar prices in Mandi remained constant at INR 46,300/t today.

Over the past three months, prices of steel scrap, semi-finished, and finished steel experienced a continuous decline.

Overview of other markets

According to BigMint's assessment, prices of ship-breaking melting scrap in Alang, Gujarat, remained consistent on 4 September, 2024, with HMS (80:20) assessed at INR 34,400/t ex-yards. Prices of semi-finished and finished steel in the area remained mostly stable during the previous day's trading session. The moderate pace of scrap trade has led suppliers to hold their offers steady today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,700-5,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-$370/t, which equates to approximately INR 33,272/t (including freight). Meanwhile, local scrap, HMS (80:20), prices in Mumbai remained stable at INR 32,500/t, unchanged from the last two weeks. In India, indicative prices of shredded scrap from Europe stood at $385-$390/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 13,400/t.

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

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