India: BigMint's scrap index rises by INR 600/t d-o-d amid rising steel demand-24 Sept'24
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- Sponge iron prices rise by INR 200/t d-o-d
- Semis', finished steel prices rise by INR 500/t-550/t
BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market has shown a healthy increase of INR 600/t, bringing the price to INR 36,900/t DAP today. While the availability of raw materials remains average, the rise in scrap prices is attributed to increased demand in the steel market.
A mill owner commented, "Although demand is improving, it hasn't grown as much as anticipated. However, traders from neighbouring states are consistently sourcing materials from the market. Currently, there is a noticeable rise in demand for pipes, rebar, and structural steel. In the near term, we expect Mandi prices to reach INR 42,500/t based on demand, with a projected bottom range of INR 41,700/t under current conditions."
Raw materials' overview
Sponge iron (CDRI) prices rose by INR 200/t to INR 30,700/t DAP in Mandi, fuelled by decent demand. Meanwhile, pig iron (steel grade) prices in Ludhiana remained stable at INR 38,000/t DAP.
Steel market
In the Mandi region, steel ingot prices rose by INR 550/t to INR 42,200/t during the price reporting and normalisation phase. On the other hand, prices in other key markets increased by INR 100/t to INR 700/t. The semi-finished steel market in the region experienced a w-o-w increase of INR 1,400/t. Rebar (Fe500) prices in Mandi increased by INR 500/t, reaching INR 46,900/t ex-works, driven by a surge in trading activity.
Overview of Alang market
According to BigMint's report, on Tuesday ship-breaking melting scrap prices in Gujarat's Alang market jumped by INR 500/t compared to the previous day. HMS (80:20) prices stood at INR 34,200/t ex-yards. Additionally, semi-finished steel prices in the area rose by INR 900-1,000/t during yesterday's market activity. Active buying inquiries from induction furnace (IF) steel mills in Bhavnagar have also encouraged suppliers to raise their offers today.
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 $365-$370/t, which equates to approximately INR 33,148/t (including freight). Local scrap HMS (80:20) prices in Mumbai increased by INR 300/t to INR 32,800/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 13,100/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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