- Raw material prices improve d-o-d
- Finished steel market rises by INR 400/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market remains stable at INR 38,700/t DAP on Friday.
Today, the mandi scrap market experienced sluggish trading activity as mills continued to procure scrap albeit at a need-based level. Additionally, a minor drop in semi-finished prices has led scrap traders to adopt a cautious wait-and-see approach. However, mills sought discounts on offers. In the near-term, the steel market is anticipated to see some upward movement, as expected by steelmakers. Mandi ingot prices are projected to range between INR 44,000/t and INR 44,500/t.
Raw materials overview
In the Mandi market, sponge iron (CDRI) prices rose by INR 300/t to INR 32,800/t DAP, driven by an increase in offers from traders due to rising iron ore prices and improved sponge consumption by local mills in the region. Conversely, in Ludhiana, pig iron (steel-grade) prices also saw a rise, increasing by INR 150/t to INR 40,250/t DAP.
Steel Market
In the Mandi region, steel ingot prices marginally decreased by INR 100/t to INR 44,000/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased by INR 100-600/t. The steel markets in Mumbai, Muzaffarnagar, and Ghaziabad saw a considerable rise today, with semi-finished steel prices up by INR 600/t, due to robust demand. Rebar (Fe 500) prices in Mandi climbed by INR 400/t to INR 49,000/t exw. The market witnessed a price increase, driven by strong demand in the region compared to the previous trading session.
Overview of Chennai market
Prices of billet, rebar, and HMS 80:20 scrap in the south India-based Chennai market remained stable, with levels assessed at INR 44,500/t, INR 48,200/t, and INR 32,300/t, respectively. Trade inquiries for semi-finished and finished steel were moderate on Friday’s session. Market insiders said that domestic scrap is in short supply, and with imported scrap offers on the higher side, there is a possibility that domestic scrap prices may see an uptrend in the near future.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $375-$380/t, which equates to approximately INR 34,130/t (including freight). Local scrap HMS (80:20) prices in Mumbai remained stable at INR 33,500/t DAP. In India, indicative prices of shredded scrap from Europe stood at $400-$405/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 12,850/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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