India: BigMint's scrap index rises by INR 200/t amid improved steel prices-23 Sep
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- Sponge iron prices increased by INR 300/t d-o-d in Mandi
- Semi-finished steel prices rise by INR 250/t today
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market increased by INR 200/tonne (t), reaching INR 36,300/t DAP today. Mills in the region continued to procure domestic steel scrap, while the semi-finished steel market experienced moderate trading activity. However, the steel market in Mandi is currently facing weaker buying conditions compared to the previous week. Additionally, purchases of imported steel remained inactive due to higher offer prices.
Raw materials' overview
Sponge iron (CDRI) prices in Mandi increased by INR 300/t to INR 30,500/t. Decent trade activity was seen in the market. Meanwhile, pig iron (steel grade) prices in Ludhiana have fallen by INR 200/t to INR 38,000/t DAP.
Steel market
In the Mandi region, steel ingot prices climbed by INR 250/t to INR 41,650/t during the price reporting and normalisation phase. Prices in other key markets increased by INR 250/t to INR 900/t. But the most notable improvement was seen in the Ahmedabad steel market as semis prices increased by INR 900/t to INR 41,000/t.
Rebar (Fe500) prices in Mandi rose by INR 400/t to INR 46,400/t exw, supported by increased trading activity.
Overview of Alang market
Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 600/t d-o-d on Saturday. HMS (80:20) prices were assessed at INR 33,700/t ($404/t) exy. Active demand for semi-finished and finished steels emerged in the region during the latter half of yesterday's trading session. Additionally, increased buying inquiries for scrap from Bhavnagar-based mills prompted suppliers to raise their offers.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300/t.
Domestic vs imported scrap: Imported melting scrap prices at the Nhava Sheva Port were at $363-$365/t, which equates to approximately INR 32,600/t (including freight). Local scrap HMS (80:20) prices in Mumbai remained stable at INR 32,500/t DAP.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 12,900/t.
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