India: BigMint's scrap index inches up by INR 100/t ($1.21)
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According to BigMint's report on 8 March, 2024, domestic end-cutting scrap prices in the Mandi Gobindgarh steel market rose by INR 100/t, reaching INR 37,800/t for plant delivery. Additionally, steel ingot prices in the region increased by INR 100/t to INR 43,200/t d-o-d, while rebar (Fe500) prices remained unchanged, reflecting moderate demand.
"Following the second half of the trading session, the market appeared to close down due to the Maha Shivratri festival, with a majority of buyers pausing their activities in the region," a source informed BigMint.
Another mill owner said: "The Mandi steel market continues its trend of being range-bound, mirroring the scenario of the past few weeks. Forecasts suggest minimal fluctuations in the near term. However, steelmakers anticipate a potential price increase once demand strengthens and trade activity picks up significantly."
Raw material price update
In Mandi, the cost of sponge iron (CDRI) rose by INR 100/t to INR 31,000/t, whereas in Ludhiana, pig iron (steel grade) prices stayed the same, remaining stable at INR 39,100/t on a delivered-at-plant (DAP) basis.
Imported scrap market
The Indian market for imported ferrous scrap saw subdued activity today, characterised by a dearth of significant inquiries. Offers for shredded scrap from leading exporting countries ranged between $400/t and $410/t CFR.
Overview of other markets
Mumbai's IF route rebar (Fe 500) prices remained stable and stand at INR 49,500/t exw d-o-d. Slow trading activities have been observed in the finished segment of the spot market as festive moods are preventing buyers from procuring material in bulk. Scrap (HMS 80:20) prices hovered in the range of INR 33,500-34,000/t DAP. Conversion spread from scrap to billet, hovering around INR 9,700/t.
Prices for ship-breaking melting scrap in Alang, Gujarat, stayed unchanged for the fourth consecutive day as per the assessment by BigMint on 8 March, 2024. HMS (80:20) prices remained at INR 33,700/t ex-yard. Semi-finished and finished steel segments reported an average demand level in the region's trading session yesterday, resulting in stable offers from scrap suppliers today.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic vs imported scrap: The imported melting scrap prices at Nhava Sheva Port stood at approximately $373/t-$378/t, equivalent to around INR 33,475/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai declined by INR 200/t, settling at INR 33,500/t d-o-d.
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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