India: BigMint's scrap index rises by INR 400/t d-o-d amid moderate market
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- Steel market witnesses decent trade in Mandi
- Semis, finished steel prices up by INR 800/t d-o-d in Mumbai
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market increased by INR 400/t to INR 38,700/t DAP on 30 July, 2024.
Today, the Mandi steel market witnessed a slight improvement in demand compared to the last few weeks, resulting in some upward movement in prices. The near-term market appears range-bound, with ingot prices fluctuating between INR 42,700/t and INR 43,700/t. The ongoing shortage of scrap in the major market has led mills to increasingly use sponge iron in place of imported scrap.
Raw materials overview
Sponge iron (CDRI) prices in Mandi increased by INR 200/t to INR 30,500/t. Similarly, pig iron (steel grade) prices in Ludhiana remained unchanged at INR 40,200/t DAP.
Steel market trend
In the Mandi region, steel ingot prices moved up by INR 400/t to INR 43,600/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets rose by INR 200/t to INR 700/t. In the Mumbai market, semi-finished prices increased by INR 700/t d-o-d.
Rebar(Fe500) prices climbed by INR 400/t to INR 48,000/t exw, amid moderate trade activities in Mandi today.
Overview of other markets
Prices of rebar (Fe 500) on the Mumbai IF route increased d-o-d by INR 800 to INR 45,200/t exw. Moderate trade activity was seen in the market for finished steel. Additionally, the cost of a billet has gone up by INR 800/t d-o-d to INR 42,000/t DAP. The current pricing of scrap (HMS 80:20) is INR 33,000/t DAP. Conversion spread between scrap and billet is around INR 9,000/t.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread were at INR 4,900-5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $387-$395/t, which equates to approximately INR 35,273/t (including freight), while local scrap, HMS (80:20), prices in Mumbai rose by INR 200/t to INR 33,000/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$418/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 14,300/t.
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