- Mandi scrap market moves in narrow range
- Finished prices inch up by INR 100/t d-o-d
BigMint’s domestic end-cutting scrap index tracking the Mandi Gobindgarh market increased by INR 200/tonne (t) to INR 37,500/t DAP on 20 August, 2024. The market appears to be moving within a narrow range, with ingot prices fluctuating between INR 41,700-42,700/t. Due to the ongoing scrap shortage in key markets, mills are increasingly turning to sponge iron as a replacement for imported scrap.
Raw materials overview
Sponge iron (CDRI) prices remained constant in Mandi at INR 30,000/t d-o-d. Meanwhile, in Ludhiana, pig iron (steel grade) prices remained unchanged at INR 40,000/t DAP.
Steel market overview
In the Mandi region, steel ingot prices remained stable at INR 42,100/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased by INR 50/t to INR 300/t.
Today, rebar (Fe500) prices in Mandi marginally moved up by INR 100/t to INR 46,800/t.
Overview of other markets
On 20 August, 2024, ship-breaking melting scrap prices in Alang, Gujarat, saw a rise of INR 200/t from the previous day, as noted by BigMint. HMS (80:20) scrap is currently priced at INR 34,200/t ex-yards. The region also saw semi-finished and finished steel prices going up by INR 100-200/t in the latest trading session. The increase in scrap prices is attributed to strong demand, which has prompted suppliers to raise their prices accordingly.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 4,600-5,000/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $375-$380/t, which equates to approximately INR 34,028/t (including freight), while local scrap, HMS (80:20), prices in Mumbai moved up by INR 200/t to INR 33,200/t today. In India, indicative prices of shredded scrap from Europe stood at $397-$400/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 13,950/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – support@bigmint.co
Leave a Reply