- All major markets see improved demand
- Semis’ prices see increase of INR 100-750/t
BigMint’s domestic end-cutting scrap index in the Mandi Gobindgarh market increased by INR 500/tonne (t) to INR 40,900/t DAP on 30 April, 2024. In the Mandi steel market, there was an uptick in trade activity, particularly notable in the spot demand for semi-finished and finished steel. Additionally, the scrap market experienced an uptrend, with prices rising by INR 500/t across various grades of scrap.
Raw materials
Sponge iron (CDRI) prices in Mandi rose by INR 200/t to INR 34,800/t. Meanwhile, pig iron (steel grade) prices in Ludhiana remained stable at INR 42,000/t DAP.
Semis’, finished steel market
In the Mandi region, steel ingot prices surged by INR 400/t to INR 40,700/t during the price reporting and normalisation phase. Meanwhile, semis’ prices in other key markets experienced an increase, ranging from INR 100/t to INR 750/t. The highest rise was observed in the Raipur steel market, up by 750/t d-o-d on improved demand.
Rebar (Fe500) prices rose by INR 200/t to INR 51,100/t ex-works with decent trade activity.
Overview of other markets
In the Raipur steel market, there was an uptick in demand, resulting in an increase in semis’ billet prices by INR 850/t to INR 43,750/t. Additionally, finished steel prices of rebar (Fe500) witnessed a rise of INR 700/t to INR 46,700/t.
The Hyderabad steel market witnessed a robust improvement across all segments of steel. Both billet and scrap prices surged by INR 1,000/t, while finished steel, particularly rebar (Fe500), witnessed an uptick of 500/t, driven by strong demand. The assessed prices stood at INR 45,500/t for billet, INR 33,500/t for HMS (80:20) scrap, and INR 49,000/t for rebar (Fe500).
Price highlights
End-cutting, 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 $400-$405/t, which equates to approximately INR 35,994/t(including freight). Local scrap-HMS (80:20) prices in Mumbai increased by INR 100/t d-o-d to INR 35,500/t. In India, indicative prices of shredded scrap from Europe stood at $420-$420/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 14,750/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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