- Scrap buyers push for lower prices.
- Rebar prices fall by INR 1,500/t w-o-w.
BigMint’s domestic end-cutting scrap index in the Mandi Gobindgarh market has fallen for the eight straight day, dropping by INR 200/t to INR 40,600/t DAP on 14 May, 2024. Today, scrap buyers in the Mandi market continued to push for lower prices from local suppliers. However, the lack of substantial volume deals indicates a moderate market situation prevailing overall.
Raw materials
Sponge iron (CDRI) prices in Mandi fell by INR 200/t to INR 35,000/t, whereas steel-grade pig iron prices remained unchanged at INR 43,400/t in Ludhiana.
Semis, finished steel
Steel ingot prices remained stable at INR 46,500/t in Mandi today as the market underwent the price reporting and normalisation phase. However, semis prices witnessed a decline in other major markets, with reductions ranging from INR 200-400/t. The Mumbai and Muzaffarnagar markets experienced the most significant drop of INR 400/t.
Rebar(Fe500) prices fell by INR 200/t to INR 51,300/t with muted trade activity in Mandi. In the region rebar prices have experienced a w-o-w decrease of INR 1,500/t.
Overview of other markets
Alang, Gujarat, reported unchanged ship-breaking melting scrap prices on 14 May, 2024. BigMint’s assessment placed HMS (80:20) prices at INR 38,500/t ex-yard. Concurrently, the region observed a INR 400/t drop in semi-finished and finished steel prices in recent trading. Suppliers chose to keep scrap prices stable today, influenced by moderate trade involvement in the scrap sector.
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-$406/t, which equates to approximately INR 36,106/t (including freight). Local scrap-HMS (80:20) prices in Mumbai fell by INR 300/t to INR 35,700/t DAP. In India, indicative prices of shredded scrap from Europe stood at $426-$429/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 15,100/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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