India: BigMint's scrap index falls INR 200/t despite decent trading activities
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- Mandi scrap market witnesses above-average trades
- Alang scrap prices increase by INR 300/t d-o-d
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market fell by INR 200/t to INR 38,500/t DAP on 31 July, 2024.
A scrap supplier told BigMint: "Today, mills have shown increased activity in scrap purchasing leading to good trade volumes in the Mandi steel market. Despite the ongoing shortage and bid-offer disparities, mills anticipate a slight price improvement in the coming days. The second half of the trading session was particularly favourable for Mandi mills, as they saw some spot demand."
Raw materials overview
Sponge iron (CDRI) prices in Mandi remained stable at INR 30,500/t. Similarly, pig iron (steel grade) prices in Ludhiana rose by INR 100/t to INR 40,300/t DAP.
Steel market trends
In the Mandi region, steel ingot prices dipped INR 200/t to INR 43,400/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets fell by INR 200/t to INR 600/t. In the Muzaffarnagar market, semi-finished steel prices decreased by INR 600/t d-o-d.
Rebar (Fe500) prices jumped by INR 200/t to INR 48,200/t exw amid slightly improved trades in Mandi today.
Overview of other markets
According to BigMint's assessment, ship-breaking melting scrap prices in Gujarat's Alang market rose by INR 300/t on 31 July. HMS (80:20) prices were reported at INR 36,000/t ex-yard. Active demand for semi-finished and finished steel was observed in the region during yesterday's trading session, and increased buying inquiries for scrap from Bhavnagar-based mills led suppliers to raise their offers today.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread were at INR 4,900-5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $388-$394/t, which equates to approximately INR 35,175/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained constant INR 33,000/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$415/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 14,000/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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