India: BigMint's scrap index remains stable amid muted steel demand - 1 Aug'24

• Sponge iron prices remain stable d-o-d in Mandi
  
  
• Semis, finished markets dip INR 100-200/t d-o-d
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market remained stable at INR 38,500/t DAP on 1 August, 2024.

Mandi scrap prices remained stable amid moderate trade, while slow trade activity in semi-finished steel was witnessed today compared to yesterday's trading session. The ongoing scrap shortage continues to affect the market, prompting increased sponge iron consumption. Imported buyers remain on hold due to bid-offer disparities.

A mill owner informed BigMint that, "There has been 20-30% production cuts. Inventory pressure remains a persistent headache for mills. Additionally, small and medium-scale mills in Mandi are operating only 5-6 days a week due to slow demand and price disparities in the local market caused by a shortage of materials."

Raw materials overview

Sponge iron (CDRI) prices in Mandi remained stable at INR 30,500/t. In Ludhiana, pig iron (steel grade) prices saw a slight increase of INR 200/t to INR 40,500/t DAP.

Steel market trend

In the Mandi region, steel ingot prices slightly dipped by INR 100/t to INR 43,300/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets fell by INR 50/t to INR 600/t. In the Muzaffarnagar market, semi-finished prices decreased by INR 600/t d-o-d.

Rebar (Fe500) prices fell by INR 200/t to INR 48,000/t exw in Mandi.

Overview of other markets

On 1 August, 2024, HMS (80:20) ship-breaking melting scrap prices in Alang, Gujarat, fell by INR 200/t d-o-d to INR 35,800/t ex-yard, based on BigMint's assessment. The region saw a decrease in semi-finished steel prices by INR 200/t due to limited demand, prompting suppliers to lower their offers following moderate scrap trade activities.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,800-5,200/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $387-$395/t, which equates to approximately INR 35,273/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained constant at INR 33,000/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$418/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 14,100/t.

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

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