India: BigMint's scrap index rises amid moderate market activities
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The latest report from BigMint, dated 19 March, 2024, highlighted an upswing in domestic end-cutting scrap prices in Mandi Gobindgarh steel market, climbing slightly by INR 200/t to INR 36,600/t DAP. Additionally, steel ingot prices in the vicinity rose by INR 100/t to INR 42,100/t d-o-d, while rebar (Fe500) prices remained stable at INR 46,600/t with moderate buying activity.
Today, the scrap market in Mandi saw moderate trade activity, compare to the last trading session as mills continued to procure scrap at reasonable levels. However, mills remained uninterested in booking imported scrap due to price differences and higher offers.
"The steel market is reaching its bottom price level, compounded by the pressure of the election code of conduct. This situation is further exacerbated by the cash crunch evident in the near-term market," a steelmaker informed BigMint.
Raw material price update
In Mandi, sponge iron (CDRI) prices remained stable at INR 30,800/t, while pig iron (steel grade) prices in Ludhiana held steady at INR 38,900/t on a DAP basis.
Imported scrap market
The Indian imported scrap market stayed quiet due to minimal buying interest, with domestic scrap prices more favourable to buyers. Market activities slowed due to pre-election code of conduct and the upcoming Holi festival. Indicative offers for shredded scrap hovered around $400-$410/t CFR from the US and Europe, while buyers aimed for prices below $400/t CFR.
Overview of other markets
Alang, Gujarat, witnessed steady ship-breaking melting scrap prices on 19 March, 2024, holding at INR 33,800/t ex-yard for HMS (80:20), as per BigMint's assessment. Semi-finished steel prices in the region remained largely stable in the trading session yesterday, prompting scrap suppliers to maintain firm offers today amidst moderate demand for scrap.
In Raipur's steel market, billet prices saw a modest increase of INR 100/t, reaching INR 39,500/t, while rebar (Fe500) prices experienced a slight dip of INR 100/t, settling at INR 42,900/t ex-works. The market displayed a mixed trend, with semis prices rising amidst anticipations of a hike in the northern market.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic vs imported scrap: The imported melting scrap prices at Nhava Sheva Port stood at approximately $373/t-$377/t, equivalent to around INR 33,498/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai fell by INR 300/t to INR 33,000/t DAP, 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 13,050/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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