India: BigMint's scrap index falls INR 300/t amid muted steel demand-28 Aug 24
...
- Sponge iron prices decrease by INR 200/t d-o-d
- Semis' prices move down by INR 300/t today
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market slides by INR 300/t to INR 37,000/t DAP on 28 August, 2024.In the latest weekly update, steel scrap prices in the region dropped by INR 600/t to INR 800/t.
Raw materials overview
The price of sponge iron (CDRI) in Mandi fell by INR 200/t to INR 29,800/t, reflecting week market trend d-o-d. On the other hand, pig iron (steel grade) prices in Ludhiana remained steady at INR 39,500/t DAP.
Steel market
In the Mandi region, steel ingot prices dipped by INR 300/t to INR 41,700/t during today's price reporting and normalisation phase. However, prices in other key markets decreased by INR 150 to INR 500/t. Today in Mandi, Rebar (Fe500) prices fell by INR 100/t to INR 46,500/t.
A mill owner informed "In today's trading session, the steel market in Mandi experienced a notable slowdown in overall demand. Both morning and afternoon trading periods saw subdued buyer activity, leading to a decrease in prices across various steel segments. This reduced demand has contributed to a decline in steel prices, reflecting a cautious market sentiment among buyers additionally from last three weeks, the steel market has shown remarkable stability, with ingot prices consistently hovering between INR 41,400/t to INR 42,600/t. The market has not experienced significant fluctuations, indicating a period of relative equilibrium".
Overview of other markets
On 28 August, 2024, ship-breaking melting scrap prices in Gujarat's Alang market saw a slight increase of ?INR 200/t d-o-d, according to BigMint's assessment. The prices for HMS (80:20) were evaluated at INR 34,200/t ex-yard. Additionally, semi-finished steel prices also experienced a rise of ?200 per ton during the previous trading session. The uptick in scrap prices was driven by a surge in buying inquiries, prompting suppliers to adjust their offers higher.
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 around $370-$375/t, which equates to approximately INR 33,688/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 32,500/t. In India, indicative prices of shredded scrap from Europe stood at $388-$395/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 13,600/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - support@bigmint.co
