India: BigMint's ferrous scrap index drops INR 100/t d-o-d amid moderate trading activities
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- Scrap market witnesses stable trends
- Elections in some states halt market momentum
BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market slightly fell by INR 100/tonne (t) to INR 42,300/t DAP on 7 May, 2024. The steel market observed moderate trading activity, with routine operations seen in the scrap segment, while suppliers are cautiously anticipating further positive developments in the near term.
Raw materials
Sponge iron prices in Mandi remained stable at INR 36,000/t, while steel-grade pig iron prices in Ludhiana increased by INR 100/t to INR 44,000/t d-o-d.
Semis, finished steel markets
Steel ingot prices in Mandi Gobindgarh remained constant at INR 48,200/t during the price reporting and normalisation phase. Concurrently, prices of semis in other major markets witnessed a slight decline, ranging from INR 100-300/t. The most significant drop of INR 300/t was observed in the Muzaffarnagar and Raipur markets.
In the Mandi region, prices for rebar (Fe500) remained stable at INR 52,800/t with moderate demand.
Today, the market maintained stability amid routine operations witnessed. However, certain key markets experienced price drops attributed to the ongoing elections in some states. Despite this, the near-term outlook appears promising, with mills anticipating a potential price hikes in the coming week. Election-related slowdown was notable in Jalna, Mumbai and Raipur, while the closure of the Alang ship-breaking market further contributed to the slower pace of market activity.
Price highlights
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 $400-$405/t, which equates to approximately INR 36,019/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 $422-$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 15,000/t.
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