India: BigMint's scrap index witnesses continued growth, rises INR 200/t d-o-d
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- Scrap prices improve on moderate demand
- Chennai buyers to receive imported scrap soon
BigMint's domestic steel end-cutting scrap index for Mandi Gobindgarh increased by INR 200/t to INR 41,200/t DAP. Today, the scrap market experienced a moderate level of trading activity, particularly in semi-finished and finished steel. Although there was initially a slight increase in prices for semi-finished products in the first half, sellers reduced their prices due to limited demand, resulting in moderate activity.
Raw material prices update
The price of sponge iron (CDRI) in Mandi rose by INR 200/t to INR 35,400/t, while pig iron (steel grade) prices in Ludhiana increased by INR 200/t to INR 43,500/t, based on a delivered-at-plant (DAP).
Steel market
Steel ingot prices in Mandi Gobindgarh rose by INR 100/t to INR 47,000/t during the price reporting and normalisation phase. Prices of semis in other major markets witnessed an uptick of INR 100-400/t. The Mumbai and Ludhiana markets saw the most notable increase of INR 400/t d-o-d.
Rebar(Fe500) prices in the region increased by INR 200/t to INR 51,700/t with moderate trade activity seen.
Overview of other markets
In the Chennai market in south India, prices for billets, rebar, and HMS 80:20 remained stable today, assessed at INR 48,500/t, INR 52,800/t, and INR 35,700/t, respectively. Demand for semi-finished and finished steel was at an average level in today's trading session, while scrap arrivals at mills were moderate. According to market sources, domestic scrap prices are expected to fall in the coming days, as some mills had booked imported scrap last month, which will begin arriving in the first week of June.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,800/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $405-$406/t, which equates to approximately INR 36,102/t (including freight), while local scrap-HMS (80:20) prices in Mumbai remained unchanged at INR 36,000/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $420-$425/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 15,150/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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