- Steel market in Punjab witnesses improved demand
- Prices of semis increase INR 100-900/t d-0-d
BigMint’s domestic end-cutting scrap index for the Mandi Gobindgarh market increased by INR 800/tonne (t) ($9.6) to INR 38,500/t DAP on 28 June, 2024. In the steel market in Mandi, there was an uptick in trade activity, particularly seen in the surge in demand for semi-finished and finished steel. Moreover, the scrap market witnessed an uptrend, with prices rising by INR 700/t-INR 900/t across grades.
Raw materials
Sponge iron (CDRI) prices in Mandi rose by INR 400/t to INR 31,000/t. Meanwhile, pig iron (steel grade) prices in Ludhiana rose by INR 200/t to INR 40,150/t DAP.
Steel market
In the Mandi region, steel ingot prices rose by INR 800/t to INR 44,200/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased ranging from INR 100/t to INR 900/t. The highest rise was observed in the Ludhiana market – INR 900/t d-o-d.
Rebar (Fe500) prices rose by INR 400/t to INR 48,600/t ex-works with decent trade activity observed today.
Overview of other markets
In Raipur, there was an uptick in demand resulting in an increase in billet prices by INR 750/t to INR 40,650/t exw. Additionally, rebar (Fe500) prices increased by INR 400/t to INR 44,000/t.
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: Imported melting scrap prices at Nhava Sheva Port were at around $385-$389/t, which equates to approximately INR 34,623/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai moved down by INR 200/t to INR 33,500/t today. In India, indicative prices of shredded scrap from Europe stood at $411-$414/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 15,000/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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