India: BigMint's ferrous scrap index dips INR 100/t d-o-d
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- Scrap suppliers adopt wait-and-see approach
- Mixed trend seen in Mandi market
BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market decreased by INR 100/tonne (t) to INR 42,200/t DAP on 8 May, 2024. In terms of scrap procurement, there are notable disparities as mills anticipate further drop in prices prompting suppliers to offer discounts. However, suppliers are inclined to withhold scrap offers, anticipating a more favourable market in the near term.
Raw materials
Sponge iron (CDRI) prices in Mandi decreased by INR 100/t to INR 35,900/t, while steel-grade pig iron prices in Ludhiana remained stable at INR 44,000/t d-o-d.
Semis, finished steel
Steel ingot prices in Mandi Gobindgarh fell by INR 200/t to INR 48,000/t during the price reporting and normalisation phase.
During today's session, muted buying activity was evident in the first half for semiconductors. However, in the latter half, when ingot prices dropped by INR 200/t, buyers resumed inquiries, leading to moderate market activity.
In Mandi, finished steel prices Rebar(Fe500) improved by INR 200/t to INR 53,000/t exw, with active trades.
A mixed trend was observed in the Mandi market, with prices dropping for scrap and semis, while the rebar market showed improvement. Sellers are hopeful of a positive movement in the near term, while buyers remain cautious, expecting a stable trend.
Overview of other markets
On 8 May, ship-breaking melting scrap prices in Gujarat's Alang surged by INR 500/t d-o-d, according to BigMint's assessment. HMS (80:20) prices were evaluated at INR 39,500/t ($473 per ton) ex-yard. Trade activities in semi-finished and finished steel were moderately active in yesterday's session, attributed to the ongoing assembly elections in the region. Despite this, a shortage of scrap continues to be prevalent in the market.
End-cutting, billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,800/t.
Domestic vs imported scrap market: Imported melting scrap prices at Nhava Sheva Port were at around $405-$410/t, which equates to approximately INR 36,436/t (including freight). Local scrap-HMS (80:20) prices in Mumbai remained unchanged at INR 36,500/t DAP. In India, indicative prices of shredded scrap from Europe stood at $424-$428/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 15,000/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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