- Scrap prices witness marginal drop
- Steel demand continues to remain soft in Chennai
SteelMint’s domestic steel scrap (end-cutting) index fell by INR 200/tonne (t) d-o-d to INR 37,300/t ($446/t) DAP Mandi Gobindgarh on 11 July, 2024. The Mandi steel market experienced scrap shortage as mills maintained a moderate level of purchases. While the arrival of domestic scrap was average, weak sentiments and soft trade activities were seen in this key north Indian market.
Raw materials
In Mandi, the price of sponge iron (CDRI) remained constant d-o-d at INR 30,000/t. Meanwhile, steel-grade pig iron prices in Ludhiana decreased by INR 400/t to INR 40,800/t DAP.
Steel market
Steel ingot prices in Mandi Gobindgarh remained stable at INR 43,000/t today during the price reporting and normalisation phase. Similarly, prices in various markets witnessed a mixed trend today. Rourkela saw a minor drop of INR 100/t in prices to INR 37,900/t.
Overview of other markets
In the Chennai market in South India, billet prices remained stable at INR 42,500/t while rebar prices were at INR 48,000/t. HMS 80:20 prices have decreased by INR 100/t to INR 31,800/t. According to sources, demand for finished steel is limited, although the supply of domestic scrap to mills is just about average.
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 market: Imported melting scrap prices at Nhava Sheva Port were at around $384-$385/t, which equates to approximately INR 34,300/t (including freight). Local scrap, HMS (80:20), prices in Mumbai fell by INR 700/t to INR 32,800/t DAP.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,800/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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