- Steady supply of scrap catering to mills requirements
- Steelmakers face uncertainty about future direction
On 15 May, 2024, BigMint’s domestic scrap (end-cutting) index held firm at INR 40,600/t DAP Mandi Gobindgarh. Despite fluctuations in trade dynamics, the Mandi market saw a steady supply of scrap catering to the requirements of mills.
Steel market
Steel ingot prices in Mandi fell by INR 150/t to INR 46,400/t during the price reporting and normalisation phase. On the other hand, prices in other major markets witnessed a decline of INR 100/t-300/t. The highest decrease was observed in Rourkela, with prices dropping by around 300/t d-o-d.
The regional steel market is exhibiting a mixed scenario, with steelmakers facing uncertainty about the future direction. Despite the confusion, there is optimism that the near-term steel market might witness some positive movements in steel prices.
Overview of other markets
Ship-breaking melting scrap prices in Gujarat’s Alang market decreased by INR 200/t d-o-d on 15 May, 2024. According to BigMint’s assessment, HMS (80:20) prices stand at INR 38,300/t ex-yard. Need-based trade activity was observed in semi-finished and finished steel in the region during yesterday’s trading session. Additionally, moderate trade activity in scrap prompted suppliers to reduce their offers today.
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 $405-$406/t, which equates to approximately INR 36,100/t (including freight). Local scrap-HMS (80:20) prices in Mumbai inched up by INR 100/t to INR 35,800/t DAP.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 15,100/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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