India: BigMint's scrap index improves by INR 200/t amid steady market-30 Aug'24

• Sponge iron prices remain stable d-o-d
  
  
• Semi-finished steel prices move up by INR 150/t
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market inched up by INR 200/tonne (t) to INR 37,200/t DAP on 30 August, 2024. On monthly basis end-cutting scrap prices dipped by around 950/t with limited steel demand in the region.

Today, prices of semi-finished products and scrap showed some improvement. However, the market maintained a moderate working trend with no significant change in demand. Overall, the market remained range-bound, with no major fluctuations observed.

Raw materials overview

In Mandi, sponge iron (CDRI) prices stayed at INR 30,000/t, showing a consistent market trend. On the other hand, Ludhiana saw a reduction in pig iron (steel grade) prices by INR 200/t to INR 39,300/t DAP with muted demand.

Steel market

In the Mandi region, steel ingot prices sharply increased by INR 150/t to INR 41,900/t during the price reporting and normalisation phase on Friday. However, prices in other key markets increased by INR 100 to INR 300/t. Rebar (Fe500) prices remained stable at INR 46,400/t exw in Mandi.

Overview of other markets

Scrap prices in Alang's ship-breaking sector edged up by INR 200/t to INR 34,200/t exy. Sources have pointed out a growing discrepancy between sellers and buyers regarding pricing. With about 15-20 ships beached for dismantling, the lower scrap availability has encouraged suppliers to push for higher rates. Conversely, limited demand for both semi-finished and finished steel has led buyers to lower their offers.

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-$375/t, which equates to approximately INR 33,641/t (including freight). Meanwhile, 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 13,500/t.

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

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