India: BigMint's scrap index maintains upward trajectory for third consecutive day
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- Scrap prices see continuous growth in Mandi
- Semis market witnesses decent trade activity
BigMint's domestic steel end-cutting scrap index for Mandi Gobindgarh increased by INR 100/tonne (t) to INR 41,400/t DAP. Scrap prices continued to improve for the third straight day as mills are procuring scrap in decent level.
"A notable scrap transaction was absent in Mandi as major mills opted to wait for the incoming shipment of imported scrap anticipated to arrive next month. Large mills are keeping their scrap inventory stocked for approximately 7 to 10 days, whereas smaller mills are maintaining inventory for only 2 to 3 days," a scrap supplier told BigMint.
Raw material prices
Prices of sponge iron (CDRI) in Mandi increased by INR 200/t to INR 35,200/t with active bookings. Meanwhile, pig iron (steel grade) prices in Ludhiana remained unchanged at INR 43,500/t, based on delivered-at-plant (DAP) basis.
Steel market
Steel ingot prices increased by INR 100/t to INR 47,100/t DAP, as reported during the price normalisation phase. In contrast, prices in various other markets witnessed an increase, ranging from INR 200/t to INR 500/t. Trade activity in semi-finished and finished steel in the Mandi market was observed to be moderate. Today, the semi-finished steel markets in Ghaziabad experienced a significant uptick, with prices rising by INR 400/t.
Overview of other markets
Durgapur: Average trades were observed in the spot market in this week. Suppliers maintained current offer levels, but reduced discounts on bookings as buyers became active and procured sufficient material. As per the participants, prices might remain range-bound in the near term taking into account the current scenario. Billet prices marginally fell by INR 50/t to INR 43,850/t, while rebar prices increased by INR 100/t to INR 47,600/t d-o-d.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,700/t.
Domestic Vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $405-$410/t, which equates to approximately INR 36,348/t (including freight),while local scrap-HMS (80:20) prices in Mumbai increased by INR 500/t to INR 36,500/t d-o-d. 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 15,300/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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