- Raw material prices remain stable d-o-d
- Prices of semis edge up by INR 200/t today
BigMint’s domestic end-cutting scrap index tracking the Mandi Gobindgarh market rose by INR 100/tonne (t) to INR 37,100/t DAP on 26 August, 2024. Mills are continuing to procure domestic steel scrap in the region, while the semi-finished steel market saw moderate trading activity today.
Raw materials overview
Sponge iron (CDRI) prices in Mandi remained constant at INR 30,000/t. Decent trade activity was seen in the market. Conversely, pig iron (steel grade) prices in Ludhiana remained stable at INR 39,700/t DAP.
Steel market overview
In the Mandi region, steel ingot prices rose marginally by INR 200/t to INR 41,800/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased by INR 100/t to INR 500/t.
Today, rebar (Fe500) prices in Mandi remained steady at INR 46,400/t.
Overview of other markets
Mumbai: Prices for IF rebar (Fe 500) in Mumbai remained stable d-o-d at INR 45,800/t exw. Limited trade activity was seen in the market for finished steel. Current prices of scrap (HMS 80:20) are INR 32,500/t DAP. Conversion spread between scrap and billet is around INR 8,200/t.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 4,700-5,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $370-$375/t, which equates to approximately INR 33,653/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 32,500/t today. In India, indicative prices of shredded scrap from Europe stood at $385-$395/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 13,450/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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