India: BigMint's scrap index increases by INR 200/t d-o-d - 27 Aug'24

• Sponge iron prices stable over past one week
  
  
• Semi-finished steel prices rise INR 200/t today
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market rose by INR 200/t to INR 37,300/t DAP on 27 August, 2024.

Today, the Mandi steel market showed moderate movement. The market outlook for August suggests no significant price fluctuations, with steel ingot prices projected to stay within the range of 41,300/t to 42,500/t.

In the early part of the trading session in Mandi, ingot manufacturers benefited as prices rose above 42,100/t. By the afternoon, the market slowed down, and ingot prices adjusted, returning to a more stable range.

Raw materials overview

The price of sponge iron (CDRI) in Mandi has remained unchanged at INR 30,000/t for the past week, reflecting decent consumption by steel producers. On the other hand, pig iron (steel grade) prices in Ludhiana have fallen by INR 200/t to INR 39,500/t DAP.

Steel market

In the Mandi region, steel ingot prices rose by INR 200/t to INR 42,000/t during today's price reporting and normalisation phase. However, prices in other key markets increased by INR 100 to INR 400/t. Today in Mandi, Rebar (Fe500) prices climbed by INR 200/t to INR 46,600/t. The demand for finished steel in the region continued to be moderate.

Overview of other markets

In Gujarat's Alang market, ship-breaking melting scrap prices increased by INR 100/t to INR 34,000/t ex-yard on 27 August 2024, as reported by BigMint. Activity in semi-finished and finished steel saw a boost yesterday, and a rise in scrap buying inquiries has led suppliers to enhance their offers 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 around $370-$375/t, which equates to approximately INR 33,664/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 33,500/t. In India, indicative prices of shredded scrap from Europe stood at $390-$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

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