India: BigMint's ferrous scrap index rises INR 300/t d-o-d amid moderate steel demand
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- Power outage concerns support steel prices
- Semi,finished steel prices jumps INR 600/t d-o-d
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 300/tonne (t) d-o-d to INR 38,500/t DAP on 29 June.Recent power-cut news lifted trading activity in the region, but demand for semi-finished and finished steel remained moderate, and prices are likely to improve gradually. Mills reported slightly higher buying inquiries than in the previous session, but market visibility is still limited because there is no clear update on how much the Punjab State Power Corporation Ltd (PSPCL) will actually reduce power cuts, leaving mills uncertain about the near-term production and procurement outlook.
A mill owner informed BigMint "Punjabs fresh power outages are likely to keep the secondary steel market under pressure, especially in Mandi Gobindgarh and other furnace-based clusters, because induction furnaces and rolling mills depend on uninterrupted power for smooth melting and rolling cycles; even short disruptions can slow production, delay dispatches, raise restart fuel costs, and reduce plant utilization, which may tighten local supply and support prices in the near term, while also making procurement planning, raw material scheduling, and delivery commitments more difficult for secondary steel units if the outage trend continues."
Alternative raw-materials
Sponge iron (CDRI) in Mandi Gobindgarh inched up by INR 100/t d-o-d to INR 29,800/t DAP. Steel-grade pig iron in Ludhiana slipped by INR 350/t to INR 41,250/t DAP today.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh improved by INR 300/t d-o-d to INR 43,200/t DAP. Ingot prices across major production hubs also increased by INR 200-500/t during todays trading session.
Rebar (Fe500) in Mandi remained climbed by INR 600/t d-o-d to INR 48,000/t ex-works.HR strip(patra) prices hiked by INR 700/t to INR 47,000/t ex-works amid moderate demand.
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 4,500-4,900/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $338/t, approximately INR 34,230/t (inclusive of freight). HMS (80:20) in Mumbai decreased by INR 300/t d-o-d to INR 32,400/t DAP. Indicative prices of shredded from Europe stood at $382-$384/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 14,950/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, click here
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