India: BigMint's scrap index rises by INR 100/t d-o-d - 3 Sep'24

• Sponge iron and semis prices up by INR 100/t today
  
  
• Finished steel market witnesses INR 300/t drop w-o-w
  
  

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market increased slightly by INR 100/tonne (t) d-o-d to INR 36,900/t DAP on 3 September 2024.

Pronounced activity was seen in today's scrap market, with major mills maintaining their regular purchasing routines while scrap availability remained moderate. Due to a lack of imported scrap, mills have been increasingly relying on sponge iron for their steel production. Small and medium-sized mills have been encountering difficulties in securing scrap, as suppliers are focusing on larger volume transactions with bigger buyers.

Raw materials overview

Sponge iron (CDRI) prices increased by INR 100/t d-o-d to INR 30,000/t today. Meanwhile, in Ludhiana, pig iron (steel grade) prices remained constant at INR 39,300/t DAP.

Steel market

In the Mandi region, steel ingot prices moved up by INR 100/t d-o-d to INR 41,600/t today. Meanwhile, prices in other key markets increased by INR 100-300/t. The Muzaffarnagar steel market saw the most significant price increase, of around INR 300/t.

Rebar (Fe 500) prices in Mandi remained stable at INR 46,300/t exw today. Prices in the region dipped by INR 300/t w-o-w.

Overview of other markets

Prices for rebar (Fe 500) on the Mumbai IF route remained stable d-o-d at INR 45,700/t exw. Limited trade activity was seen in the market for finished steel. The current prices of scrap (HMS 80:20) are INR 32,500/t DAP. The conversion spread between scrap and billet is at around INR 8,200/t.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,700-5,000/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-$370/t, which equates to approximately INR 33,687/t (including freight). Meanwhile, local scrap, HMS (80:20), prices in Mumbai remained stable at INR 32,500/t, unchanged over the last two weeks. In India, indicative prices of shredded scrap from Europe stood at $385-$390/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 13,350/t.

To view BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.

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