- Tight supply of certain grades allows for stable scrap tags
- Semis, finished steel prices slide amid weak sentiment
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 35,700/tonne (t) DAP on 8 July.
Steel market activity remained sluggish today, with buying largely restricted to need-based purchases. Persistent weak demand for both semi-finished and finished steel continued to weigh on buyer sentiment. However, limited availability of certain scrap grades allowed some suppliers to hold prices steady despite the broader market slowdown.
Alternative raw materials
Prices of sponge iron (CDRI) in Mandi Gobindgarh rose by INR 200/t d-o-d to INR 29,000/t DAP as buying from local mills slightly improved. Similarly, steel-grade pig iron prices in Ludhiana remained stable at INR 35,300/t DAP.
Steel market trends
Steel ingot prices in Mandi Gobindgarh declined by INR 100/t d-o-d to INR 40,600/t DAP, amid weak market sentiment and limited trading activity. Ingot prices in Mandi have been falling consistently over the past three days, as mills continue to face pressure from the ongoing downtrend.
In other key regions, semi-finished steel also registered a marginal drop of INR 100-200/t due to subdued demand.
Rebar (Fe500) prices in Mandi declined by INR 100/t d-o-d to INR 45,400/t exw. The market continued to witness a downtrend, driven by persistent weak sentiment and subdued demand.
Overview of Jalna market
In the Jalna market, billet and HMS 80:20 prices remained stable d-o-d, assessed at INR 38,800/t and INR 30,300/t, respectively. Rebar prices inched up by INR 200/t d-o-d to INR 42,900/t, supported by decent trading activity in the finished steel segment during the previous session, when mills offered lower prices.
However, trading activity slowed down today following the upward revision in mill offers. On the raw material side, scrap arrivals at mills remained moderate, with suppliers showing resistance to lower prices, limiting supply.
Upcoming scrap auctions
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 4,900-5,300/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $330-335/t, which equates to approximately INR 30,902/t (including freight). Today, local HMS (80:20) prices in Mumbai remained stable at INR 30,700/t DAP. Indicative prices of shredded from Europe stood at $360/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 13,750/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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