BigMint’s ferrous scrap index on 14 March, 2024, showed a decline in domestic end-cutting scrap prices at Mandi Gobindgarh steel market, dropping by INR 500/t to INR 37,000/t for DAP (delivered at plant) basis.
A Mandi scrap supplier informed: “The market has been weak for the past three days, and with plenty of stock in mills, scrap suppliers are feeling the pressure. Mills are only buying the scrap they urgently need at low prices, squeezing margins. Different scrap suppliers in various states are offering different prices now.”
Steel market
Steel ingot prices in Mandi decreased by INR 300/t compared to the previous day, reaching INR 42,500/t during the reporting period. Additionally, prices in other significant markets experienced declines ranging from INR 100/t to INR 300/t on the same day.
In Mandi, the steel market encountered sluggish trade activity as buyers remained on the sidelines throughout the day. The market sentiment was characterised by anticipation for potential decreases in semi-finished steel prices. Furthermore, pricing disparities persisted in the scrap market, adding to the subdued atmosphere in the region.
Raw material price update
In Mandi, the price of sponge iron (CDRI) held steady at INR 30,900/t, while in Ludhiana, pig iron (steel grade) prices remained unchanged at INR 39,000/t on a delivered-at-plant (DAP) basis.
Overview of other markets
In Alang, Gujarat, ship-breaking melting scrap prices remained steady on Thursday as per the assessment by BigMint. HMS (80:20) prices stood firm at INR 33,500/t ex-yard. The market for semi-finished steel in the region exhibited stability during the trading session yesterday, and scrap suppliers kept their offers unchanged today, driven by moderate buying interest at current price levels.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,100-5,600/t.
Domestic vs imported scrap: The imported melting scrap prices at Nhava Sheva Port stood at approximately $370/t-$376/t, equivalent to around INR 33,356/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai remained constant, settling at INR 33,500/t d-o-d.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,200/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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