India: BigMint's scrap index slides marginally amid supply concerns
...
- Scrap shortage seen in Mandi market
- Semis' prices drop by INR 100-700/t
BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market marginally dropped by INR 100/tonne (t) to INR 41,600/t DAP on 5 June, 2024. Throughout both halves of the trading session, the market remained subdued for semi-finished and finished steel. However, scrap prices saw a slight decrease of INR 100/t in the region amidst moderate activity. Additionally scrap shortage persisted in the Mandi market.
Raw material prices
Sponge iron (CDRI) prices decreased by INR 200/t to INR 35,000/t, while steel grade pig iron prices in Ludhiana moved down by INR 200/t to INR 43,000/t DAP today.
Steel market
Steel ingot prices in Mandi Gobindgarh fell by INR 100/t to INR 47,300/t during the price reporting and normalisation phase. On the other hand, prices of semis in other major markets witnessed a decline in the range of INR 100-700/t. The Ghaziabad semi-finished steel market witnessed a significant drop of around INR 700/t today.
In Mandi, rebar (Fe500) prices fell by INR 200/t to INR 52,200/t today.
Overview of other markets
BigMint's assessment revealed a decline in ship-breaking melting scrap prices at Gujarat's Alang market on 5 June, 2024, by INR 300/t ($3.6/t) d-o-d. The evaluated HMS (80:20) prices stood at INR 39,200/t ($470/t) ex-yard. Moreover, semi-finished steel prices witnessed a similar decrease of INR 300/t in the region amid moderate trade activities in scrap, leading suppliers to adjust their offers accordingly.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $395-$400/t, which equates to approximately INR 35,557/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained stable at INR 36,500/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $418-$420/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 stands at INR 16,500/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - support@bigmint.co
