India: BigMint's scrap index up INR 500/t on positive market sentiments - 3rd October
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- Sponge iron prices rise INR 500/t today
- Steel semis prices up INR 600/t d-o-d
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, saw a healthy improvement of INR 500/t, settling at INR 38,700/t DAP.
A mill owner informed BigMint: "Strong demand for semi-finished and finished steel, coupled with a shortage of domestic scrap due to ongoing GST checks at Mandi borders, has driven steel prices higher in the region. Additionally, sponge iron traders are capitalizing on this scarcity, raising their offers by INR 500/t today. Currently, steel mills in Mandi are utilizing 70-75% scrap and 25-30% sponge in their production processes. In the near term, the market is expected to see further increases in steel prices, as ingot prices are projected to range between INR 44,000 and INR 44,700/t."
Raw materials overview
In Mandi, sponge iron (CDRI) prices rose INR 500/t to INR 32,500/t DAP. In Ludhiana, pig iron (steel-grade) prices held steady at INR 40,100/t DAP.
Steel Market
In the Mandi region, steel ingot prices increased by INR 600/t INR 44,100/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other key markets rose INR 100-800/t. Today, the steel markets in Jaipur experienced a notable price surge, with semi-finished steel prices rising by INR 800/t due to strong demand.
Rebar (Fe 500) prices in Mandi remained stable at INR 48,600/t amid routine trades in the region.
Overview of Alang scrap market
On 3 October, prices for ship-breaking melting scrap in Alang, Gujarat, decreased by INR 300/t compared to the previous day. According to BigMint's evaluation, HMS (80:20) is currently priced at INR 35,000/t ex-yard. The demand for semi-finished and finished steel was average during yesterday's trading session. Additionally, the moderate level of trade activity in scrap prompted suppliers to reduce their offers today.
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 Nhava Sheva Port were at $380-$385/t, which equates to approximately INR 34,549/t (including freight). Local scrap HMS (80:20) prices in Mumbai increased by INR 300/t to INR 33,500/t DAP. In India, indicative prices of shredded scrap from Europe stood at $400-$405/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,200/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
