- Raw material prices drop by INR 100/t d-o-d
- Semis, finished steel prices increase by INR 100/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, improved by INR 200/tonne (t) d-o-d to INR 36,000/t DAP on 4 Dec.
The secondary steel market in Mandi Gobindgarh is showing some positive momentum, with scrap and semi-finished steel prices rising by INR 200/t d-o-d. However, steel demand remains moderate and the ongoing scrap shortage combined with cautious buying in finished steel limits optimism for local steelmakers. Conversion losses continue to be a significant challenge in current steel production. Additionally, the persistent $8 price gap in imported scrap is contributing to a subdued market sentiment, resulting in tepid bookings of fresh imported scrap in the region.
Raw material
Sponge iron (CDRI) prices in Mandi fell by INR 100/t to 29,200/t DAP. Meanwhile, steel grade pig iron prices in Ludhiana inched down by INR 100/t to INR 34,850/t DAP.
Steel market
In Mandi Gobindgarh, semi-finished steel ingot prices rose INR 150/t d-o-d to INR 40,900/t DAP, with intraday gains ranging from INR 100-500/t across key hubs. The Ahmedabad ingot market saw a sharper increase of around INR 500/t today. Rebar (Fe500) prices climbed INR 100/t to INR 45,300/t ex-works, while HR strip (patra) prices followed suit, advancing INR 100/t to INR 41,300/t exw. Demand in the region stays moderate, confined to routine trading.
Overview of Alang market
BigMint’s assessment on 4 December showed a 1% daily rise in ship-breaking melting scrap prices at Alang, Gujarat, with HMS (80:20) valued at INR 31,500/t ex-yard. The regional market experienced lively trading, buoyed by increases of INR 200-300 per tonne in semi-finished and finished steel prices. Buyer inquiries drove suppliers to hike their offers on Thursday.
Upcoming scrap auctions
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 4,800-5,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $316-$318/t, approximately INR 30,800/t (inclusive of freight). HMS (80:20) in Mumbai increased by INR 100/t to INR 30,400/t DAP. Indicative prices of shredded from Europe stood at $345/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,200/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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