India: BigMint's scrap index rises by INR 100/t d-o-d amid rising steel demand-19 Sept
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- Sponge iron prices rise by INR 300/t d-o-d
- Steelmakers are optimistic about a positive shift
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market rose by INR 100/t to INR 35,800/t DAP today.
Over the past three days, demand in the Mandi steel market has seen notable improvement, particularly in the finished steel segment, which has experienced increased trading activity. Similarly, both the scrap and semis markets have strengthened, with mills procuring scrap in substantial volumes. Steelmakers are optimistic about a positive shift in the near term, as ingot prices are currently ranging between INR 40,000-41,800/t, with expectations of further increase in demand.
A mill owner said: "In the past few days, mills have eased their finished steel inventory burden as the Mandi steel market witnessed an uptick in trade volumes."
Raw materials' overview
Sponge iron (CDRI) prices increased by INR 300/t to INR 30,000/t DAP in Mandi, driven by an uptick in demand. Meanwhile, in Ludhiana, pig iron (steel grade) prices declined by INR 150/t to INR 38,050/t DAP.
Steel market
In the Mandi region, steel ingot prices climbed by INR 200/t to INR 41,200/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased by INR 100/t to INR 500/t. But the most notable improvement was seen in the Ahmedabad steel market as semis prices increased by INR 500/t d-o-d.
Rebar (Fe500) prices in Mandi rose by INR 300/t to INR 45,700/t exw, supported by increased trading activity.
Overview of Alang market
Ship-breaking melting scrap prices in Alang, Gujarat, increased by INR 300/t d-o-d, according to BigMint's report. HMS (80:20) prices were noted at INR 33,100/t ex-yard. Increased demand for semi-finished and finished steel, coupled with strong scrap inquiries from Bhavnagar mills, encouraged suppliers to increase their offers.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400/t.
Domestic vs imported scrap: Imported melting scrap prices at the Nhava Sheva Port were at $365-$370/t, which equates to approximately INR 33,155/t (including freight). Local scrap HMS (80:20) prices in Mumbai increased by INR 200/t to INR 32,500/t DAP. In India, indicative prices of shredded scrap from Europe stood around $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 12,600/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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