- Alternate raw material prices remain unchanged
- Semis’, finish steel market observe decent trade
BigMint’s domestic end-cutting scrap index for the Mandi Gobindgarh market remained steady at INR 35,700/t DAP today.
The Mandi market saw moderate trading activity in scrap and semis, with buyers showing increased interest over the past two days in anticipation of a market recovery. However, the finished steel market remains stagnant, and mills reduced rebar prices by INR 100/t on Wednesday.
Raw materials’ overview
Sponge iron (CDRI) prices remained stable at INR 29,700/t DAP in Mandi. Meanwhile, pig iron (steel grade) prices in Ludhiana held steady at INR 38,200/t DAP.
Steel market
In the Mandi region, steel ingot prices remained stable at INR 40,900/t during the price reporting and normalisation phase. Prices in other key markets rose by INR 100/t to INR 300/t. Since yesterday’s trading session, demand has shown a slight improvement, a trend that continued into today’s market. According to steel makers, ingot prices in the near term are expected to range between INR 40,600/t and INR 41,300/t.
Rebar (Fe 500) prices in Mandi inched down by INR 100/t to INR 45,400/t ex-works.
Overview of Mumbai market
Mumbai’s induction furnace (IF) route rebar (Fe 500) prices remained stable and stand at INR 45,100/t exw d-o-d, finish steel prices dipped by around 600/t w-o-w. Limited trading activities has been observed in finished segment in the spot market. Scrap (HMS 80:20) prices hovered in the range of INR 32,000-32,500/t DAP. Conversion spread from scrap to billet hovering around INR 7,400/t.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at the Nhava Sheva Port were at $365-$370/t, which equates to approximately INR 33,178/t (including freight). Meanwhile, local scrap HMS (80:20) prices in Mumbai remained stable at INR 32,300/t DAP. In India, indicative prices of shredded scrap from Europe stood around $385-$390/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 12,650/t.
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