- Steel market witnesses a sluggish pace
- Raw material prices decrease d-o-d
BigMint’s domestic end-cutting scrap index in the Mandi Gobindgarh market has fallen for the sixth consecutive day, dropping by INR 300/t to INR 40,800/t DAP on 13 May, 2024. In the region, scrap prices dipped by around INR 1,600- 1,900/t w-o-w with limited trade inquiry and price disparities.
The steel market experienced a sluggish pace, with buyers adopting a cautious “wait-and-see” strategy in response to ongoing declines in both semi-finished and finished steel prices. Consequently, raw material prices also witnessed a d-o-d decrease. Steelmakers are currently procuring scrap at moderate levels or according to their immediate requirements, as scrap suppliers continue to encounter challenges in supplying materials at reduced margins.
Raw materials
The prices of sponge iron (CDRI) in Mandi declined by INR 300/t to INR 35,200/t, while steel-grade pig iron prices in Ludhiana dropped by INR 400/t to INR 43,400/t. Raw material prices are declining due to subdued trading activity and offers.
Semis, finished steel
Steel ingot prices in Mandi Gobindgarh fell by INR 200/t to INR 46,700/t during the price reporting and normalisation phase. Prices of semis in other major markets witnessed a decline, ranging from INR 200-500/t. The most significant drop of INR 500/t was observed in the Ghaziabad & Ahmedabad market.
Overview of other markets
On 13 May, 2024, Gujarat’s Alang market observed a decrease of INR 200/t in ship-breaking scrap prices. BigMint’s analysis revealed HMS (80:20) prices at INR 38,500/t ex-yard. Furthermore, semi-finished steel prices fell by INR 400/t during the previous trading session due to subdued trade activity in scrap, prompting suppliers to adjust their offers today.
Price highlights
End-cutting, billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,900/t.
Domestic vs imported scrap market: Imported melting scrap prices at Nhava Sheva Port were at around $405-$406/t, which equates to approximately INR 36,097/t (including freight). Local scrap-HMS (80:20) prices in Mumbai fell by INR 500/t to INR 36,000/t DAP. In India, indicative prices of shredded scrap from Europe stood at $426-$429/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 14,950/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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