- Scrap shortage continues in Mandi
- Steel market shows improved demand
BigMint’s domestic end-cutting scrap index for the Mandi Gobindgarh market moved up by INR 300/tonne (t) to INR 41,100/t DAP on 29 May, 2024. In key markets, scarcity of scrap and liquidity challenges persisted. However, improved activity was seen in the semis and finished steel markets today.
With the election date nearing in Punjab, some scrap suppliers are adopting a wait-and-see approach, anticipating potential market improvements post-election. Despite stable workflow, the prospect of a positive market shift after the election has led these suppliers to suspend taking significant decisions for now.
Raw material prices
Sponge iron (CDRI) prices increased by INR 300/t to INR 34,800/t in Mandi, while steel-grade pig iron prices in Ludhiana fell by INR 200/t to INR 42,800/t today.
Steel market
In Mandi, steel ingots prices rose by INR 300/t, reaching INR 46,700/t during reporting and price normalisation. Similarly, prices in other markets also witnessed an increase, ranging from INR 100/t to INR 600/t today. The Raigarh market experienced a notable surge of around INR 600/t d-o-d amid active trades.
In the region, rebar (Fe500) prices increased by INR 200/t, reaching INR 51,500/t, supported by improved trade activity.
Overview of other market
BigMint’s assessment on 29 May, revealed a notable increase of INR 300/t in ship-breaking melting scrap prices at Gujarat’s Alang market compared to yesterday. The market valued HMS (80:20) at INR 38,300/t ($460 per ton) ex-yard. Trading activities picked up momentum during the later hours of the trading session, especially for semi-finished and finished steel products. Furthermore, robust demand for scrap prompted suppliers to adjust their pricing upward.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $395-$400/t, which equates to approximately INR 35,552/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai increased by INR 200/t to INR 36,500/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $415-$417/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 stands at INR 16,000/t.
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