- Subdued purchasing interest from mills
- Chennai market witnesses scrap shortage
BigMint’s domestic end-cutting scrap index in the Mandi Gobindgarh market continued to decline for the fourth consecutive day. Scrap index fell by INR 300/tonne (t) to INR 41,900/t DAP on Thursday. The Mandi market saw a persistent decline in semi-finished steel prices, along with subdued purchasing interest from mills. This has created a challenging situation for local scrap traders, prompting them to lower prices and push their scrap into the market for sale.
Raw materials
Sponge iron (CDRI) prices in Mandi decreased by INR 200/t to INR 35,700/t. Meanwhile, steel-grade pig iron prices in Ludhiana remained stable at INR 44,000/t d-o-d.
Semis, finished steel
Steel ingot prices in Mandi Gobindgarh decreased by INR 300/t to INR 47,700/t during the price reporting and normalisation phase. Concurrently, prices of semis in other major markets witnessed a decline, ranging from INR 250-700/t. The most significant drop of INR 700/t was observed in the Muzaffarnagar market.
Overview of other market
In the Chennai market, situated in South India, semi-finished steel prices have remained stable, assessed at INR 49,000/t. Meanwhile, finished steel prices increased by INR 200/t to INR 53,200/t. Meanwhile, HMS 80:20 prices rose by INR 400/t to INR 35,900/t. According to market sources, “There is a shortage of scrap in the market, and suppliers are unwilling to supply scrap at lower offers. Meanwhile, mill owners have begun booking imported scrap in anticipation of a potential market increase following the assembly elections result.”
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 $405-$410/t, which equates to approximately INR 36,432/t (including freight). Local scrap-HMS (80:20) prices in Mumbai remained unchanged at INR 36,500/t DAP. In India, indicative prices of shredded scrap from Europe stood at $425-$430/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 15,000/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – support@bigmint.co
