India: BigMint's scrap index remains stable amid lacklustre steel demand

• Steel prices remain rangebound in Mandi
  
  
• Scrap prices fall INR 300/t d-o-d in Alang
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market remained stable at INR 39,000/t DAP on 17 July, 2024.

In the Mandi steel market, no major trade activities were observed in the semi-finished and finished steel segments today. Mills are acquiring scrap only as needed, given the persistent shortage, which makes it difficult for suppliers to meet the mills' requirements. The market also faces liquidity problems due to slow sales.

Raw materials overview

Sponge iron (CDRI) prices in Mandi remained unchanged at INR 30,500/t. Moreover, pig iron (steel grade) prices in Ludhiana were steady at INR 40,400/t DAP.

Steel market

In the Mandi region, steel ingot prices remained constant d-o-d at INR 44,000/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets decreased by INR 100/t to INR 200/t.

Rebar (Fe500) prices fell by INR 100/t to INR 48,700/t with slow trade activity.

Overview of other market

According to BigMint's assessment, ship-breaking melting scrap prices in Gujarat's Alang market fell by INR 300/t on 17 July, with HMS (80:20) prices now at INR 35,700/t ex-yard. The previous day's trading was marked by need-based transactions in semi-finished and finished steel markets. Just about a moderate level of activity seen among scrap traders prompted suppliers to reduce their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$392/t, which equates to approximately INR 34,960/t (including freight), while local scrap, HMS (80:20), prices in Mumbai rose slightly by INR 200/t to INR 33,000/t today. 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 13,550/t.

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

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