India: BigMint's scrap index remains stable on moderate supply of scrap
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- Slow trade activities for semi-finished steel in Mandi
- Steelmakers face uncertainty about future direction
On Monday, BigMint's domestic scrap (end-cutting) index held firm at INR 37,500/t ($446/t) DAP Mandi Gobindgarh. Despite fluctuations in trade dynamics, the Mandi market saw a moderate level supply of scrap catering to the requirements of mills.
Raw materials overview
Sponge iron (CDRI) prices in Mandi remained stable at INR 30,000/t. In Ludhiana, pig iron (steel grade) prices also remained unchanged and were assessed at INR 40,500/t DAP.
Steel market
Steel ingot prices in Mandi were almost stable and assessed at INR 42,400/t ($504/t) during the price reporting and normalisation phase. On the other hand, prices in other major markets witnessed mixed price trends. In Ghaziabad market semi-finished prices fell by 600/t to INR 40,700/t, while Ludhiana prices inched up by INR 300/t to INR 44,800/t.
Today's trading session in the Mandi market saw a slowdown in semi-finished steel trade activity compared to the previous session. The regional steel market is experiencing a mixed outlook, with steelmakers facing uncertainty regarding future market trends.
Overview of other markets
Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 5 August, 2024. According to BigMint's assessment, HMS (80:20) prices were at INR 35,100/t ($419/t) ex-yard. Average trade activity was observed for semi-finished and finished steel during the last trading session in the region. Additionally, moderate buying inquiries for scrap by Bhavnagar-based IF steel mills prompted suppliers to keep their offers stable today.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,800-5,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$390/t, which equates to approximately INR 35,000/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained constant at INR 32,700/t today.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,850/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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