India: BigMint's ferrous scrap index falls by INR 1,000/t ($12/t) w-o-w
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BigMint's domestic steel scrap (end-cutting) index for Mandi Gobindgarh, Punjab, slightly decreased by INR 100/t to INR 40,700/t on a delivered-at-plant (DAP) basis. Scrap prices were down by around 500-1,200/t w-o-w in the region.
Today, the market exhibited slower trade activity compared to the previous day, as buyers adopted a wait-and-see approach, anticipating further price drops in the near term.
Raw material price update
In Mandi, prices of sponge iron (CDRI) rose by INR 200/t to INR 34,800/t. Meanwhile, in Ludhiana, pig iron (steel grade) prices remained stable at INR 42,000/t delivered-at-plant (DAP) basis.
Semis', finished steel market
Steel ingot prices in Mandi fell by INR 100/t to INR 46,400/t during the reporting and price normalisation period. Rebar(Fe500) prices remained stable at INR 51,200/t ex-works.
Overview of other market
In the Maharashtra-based Jalna market, prices of semi-finished and finished steel, as well as HMS 80:20, have remained stable, assessed at INR 45,500/t, INR 51,700/t, and INR 34,900/t, respectively. Market sources indicated that scrap arrival in the market was slow due to vehicle checking for e-way bills in several areas of Maharashtra due to elections. Meanwhile, trade activities in finished steel were sluggish in the market.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,500-5,700/t.
Domestic vs. imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $402-$406/t, which equates to approximately INR 36,000/t (including freight), while local scrap-HMS (80:20) prices in Mumbai remained stable at INR 35,000/t d-o-d. In India, indicative prices for 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 14,150/t.
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