- Sponge iron prices remains flat d-o-d
- Semis, finished steel prices dips by INR 200/t to 300/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, fell by INR 200/tonne (t) d-o-d to INR 35,600/t DAP on 8 December.
Prices at the Mandi Gobindgarh steel market remained subdued throughout Monday’s trading session, with limited trade inquiries recorded. However, steel producers in the area believe this minor price correction is temporary, and they expect prices across all steel segment to improve over the course of the week beginning 8 December.
Raw material
Sponge iron (CDRI) prices remained unchanged day-on-day at INR 29,000/t DAP, while steel-grade pig iron prices in Ludhiana declined by INR 100/t d-o-d, settling at INR 34,700/t DAP. Pig iron prices have now fallen to a one-month low in the region.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh fell by INR 300/t d-o-d to INR 40,400/t DAP. Other major production centres also recorded falls of between INR 200-500/t on Monday.
Meanwhile, rebar (Fe500) prices in Mandi dipped by INR 200/t to INR 45,000/t ex-works. HR strip (patra) prices softened by INR 200/t to INR 40,900/t ex-works.
Overview of others market
In the western India-based Ahmedabad market, billet and rebar prices edged down by INR 200/t to INR 39,900/t and INR 44,500/t, respectively, while HMS (80:20) scrap prices remained steady at INR 30,800/t. According to market participants, trade activity in steel products has weakened in recent sessions. Despite sluggish steel demand, scrap prices have stayed supported, driven by moderate level material availability in the domestic market and firm imported scrap offers.
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 4,700-5,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $317-$318/t, approximately INR 30,343/t (inclusive of freight). HMS (80:20) in Mumbai remained stable d-o-d at INR 30,300/t DAP. Indicative prices of shredded from Europe stood at $348/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 13,250/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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