India: BigMint's scrap index rises by INR 200/t on improved trade -17 Sept

• Sponge iron prices inch up by INR 100/t d-o-d
  
  
• Semis' prices increase by INR 200/t today
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market increased by INR 200/t to INR 35,700/t DAP today. The steel market in the region saw improved trade activity compared to recent days, with a slight uptick in demand for scrap on Tuesday.

Raw materials overview

Sponge iron (CDRI) prices increased by INR 100/t to INR 29,700/t DAP in Mandi. Meanwhile, pig iron (steel grade) prices in Ludhiana increased by INR 200/t to INR 38,200/t DAP.

Steel market

In the Mandi region, steel ingot prices rose by INR 200/t to INR 40,900/t during the price reporting and normalisation phase. Prices in other key markets increased by INR 100/t to INR 200/t. Since yesterday's final trading session, demand has shown a slight improvement, a trend that has continued into today's market.

Rebar (Fe 500) prices in Mandi remained stable at INR 45,500/t ex-works. The finished steel market saw some trade inquiries in the region.

Last three months price trend*

Overview of Alang ship-breaking market

On Tuesday, ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged. As per BigMint's assessment, HMS (80:20) prices were stable at INR 33,000/t ex-yard. Despite a decrease in semi-finished steel prices during the previous trading session, moderate scrap demand from Bhavnagar-based IF steel mills led suppliers to maintain their offers. However, HMS (80:20) prices have seen a weekly drop of INR 1,000/t.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,200/t.

Domestic vs imported scrap: Imported melting scrap prices at the Nhava Sheva Port were at $365-$370/t, which equates to approximately INR 33,211/t (including freight). Meanwhile, local scrap HMS (80:20) prices in Mumbai remained stable at INR 32,300/t DAP. In India, indicative prices of shredded scrap from Europe stood around $385-$390/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 12,400/t.

To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here

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