India: BigMint's ferrous scrap index falls by INR 100/t amid price disparities
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- Scrap market sees price disparities
- Conversion: scrap to ingot changes
BigMint's domestic steel scrap (end-cutting) index for Mandi Gobindgarh, Punjab fell by INR 100/t to INR 40,600/t on a delivered-at-plant (DAP) basis. There were noticeable price disparities in the major market as buyers showed reluctance to procure goods in significant volumes. Meanwhile, sellers were engaged in negotiations, each with their own margin considerations.
Today, the current conversion spread from scrap to ingot stood at 11,100/t, slightly higher than the previous level of around 11,000/t.
Raw material price update
In Mandi, prices of sponge iron (CDRI) fell by INR 200/t to INR 34,600/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 the Mandi market remained stable at INR 46,400/t, during the price reporting and normalisation phase. On the other hand, prices in other major markets witnessed a decline, ranging from INR 50-INR 600/t today. The Mandi semis' market remained stable, with spot trade activity observed in the latter half of the trading session, while sellers maintained prices at the same level.
Rebar (Fe500) prices in the region experienced a decrease of INR 200/t to INR 51,000/t, amidst slower activity compared to the previous day.
Overview of other markets
In Alang, Gujarat, ship-breaking melting scrap prices remained steady on 26 April, 2024. BigMint's evaluation indicated that HMS (80:20) prices were maintained at INR 37,000/t ($444/t) ex-yard. While semi-finished steel prices saw an increase during the previous session in the region, trade activities continued at a moderate pace. Scrap trade activities were also modest, leading suppliers to sustain stable prices today.
Price highlights
End-cutting and 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 $398-$405/t, which equates to approximately INR 35,959/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 of shredded scrap from Europe stood at $423-$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 14,300/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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