On 1 February, 2024, the domestic steel scrap index by BigMint showed no change, maintaining stability at INR 37,400/t DAP in Mandi Gobindgarh. The steel market in Mandi experienced a lackluster performance for both semis and finished steel today. Additionally, a minor scarcity of scrap persisted in the market, and the overall market pace was slow due to adverse weather conditions (due to rain) today.
Steel market
In Mandi, steel ingot prices held steady with no change d-o-d, standing at INR 42,700/t during the reporting and price normalization. Meanwhile, prices in various key markets saw a decline of up to INR 100/t-200/t today.
In Mandi, the booking of imported scrap has witnessed a decline in recent days due to a surge in prices and differences in expectations between buyers and sellers. Concurrently, the sponge iron market is stepping in to address the shortage of scrap, with a growing number of mills opting to increase the utilization of sponge iron in their steel-making charge mix ratio.
Raw materials price update
In Mandi, the price of sponge iron (CDRI) saw a reduction of INR 100/t, settling at INR 31,300/t. At the same time, pig iron (steel grade) prices in Ludhiana remained unchanged at INR 39,500/t on a delivered-at-plant (DAP) basis.
Overview of other markets
Mumbai’s IF route Rebar (Fe 500) prices decreased by INR 300/t d-o-d at INR 48,000/t exw. Trading activities in finish market remained dull . Scrap (HMS 80:20) prices stands at INR 32,700/t DAP. Conversion spread from scrap to billet was hovering at INR 9,800/t
BigMint’s evaluation on 1 February, 2024, revealed a drop of INR 300/t in ship-breaking melting scrap prices in Gujarat’s Alang market compared to the previous day. The assessed prices for HMS (80:20) stood at INR 34,200/t ex-yard. The reduction in demand for semi-finished steel in the last trading session resulted in a decrease in offers from scrap suppliers today. Nevertheless, a noticeable gap between bids and offers was observed.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic Vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $390-$395/t, which equates to approximately INR 34,976/t(including freight),while local scrap-HMS (80:20)-prices in Mumbai fell by INR 300/t to INR 32,700/t today.
The imported scrap market in India experienced minimal activity due to the unfeasibility of prevailing prices. Indicative quotes for shredded scrap from Europe persisted in the range of $410-$415/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 13,000/t.
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