India: BigMint's ferrous scrap index drops by INR 100/t d-o-d; rises INR 300/t w-o-w

• Minor w-o-w price drop observed in sponge iron
  
  
• Scrap-to-finished spread improves by INR 200-300/t w-o-w
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, eased by INR 100/tonne (t) d-o-d to INR 38,100/t DAP on 3 July. Weekly scrap prices rose by INR 200-300/t, supported by moderate demand across semi-finished and finished steel segments.

Overall scrap-market sentiment in Mandi Gobindgarh remained moderate this week as mills buying stayed decent and domestic scrap rates firmed by INR 200-300/t. Semi-finished and finished steel prices also inched up by INR 100-250/t amid range-bound demand. Scrap availability was comfortable with good arrivals from neighbouring states, although minor logistics issues caused localised delays. Imported scrap purchases stayed muted because of high landed costs, making domestic scrap the preferred, cost-effective choice for mills.

Sponge-iron consumption strengthened, led by supplies from the Durgapur and Ramgarh regions, and is increasingly used as a cheaper alternative to imported scrap. Key drivers for the week were firm domestic scrap prices, restrained import buying, steady sponge-iron flows, and controlled transport concerns.

Raw-material, steel market trends

Sponge iron prices in Mandi declined by INR 100/t d-o-d to INR 29,400/t DAP and were down INR 100/t w-o-w. Pig-iron prices in Ludhiana rose by INR 300/t d-o-d to INR 41,100/t DAP but fell INR 600/t w-o-w amid weak buying in the region.

In the steel segment, ingot prices in Mandi dipped INR 150/t d-o-d to INR 42,700/t and improved INR 120/t weekonweek. Rebar (Fe500) exworks prices remained stable d-o-d at INR 47,500/t and increased INR 250/t on the week.

Upcoming scrap auctions

Price highlights

End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,400-4,900/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $335/t, approximately INR 34,200/t (inclusive of freight). HMS (80:20) in Mumbai remained stable d-o-d at INR 32,100/t DAP. Indicative prices of shredded from Europe stood at $388/t CFR Nhava Sheva.

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and 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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