India: BigMint's ferrous scrap index down INR 100/t on 24 Dec'24

• Sponge iron prices dip INR 100/t
  
  
• Semi-finished steel prices fall by INR 100/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, marginally fell by INR 100/tonne (t) d-o-d to INR 37,200/t DAP on 24 December 2024.

Overall market sentiment remained range-bound, with minor fluctuations observed in raw material and semi-finished steel prices, while finished steel prices held steady on a day-to-day basis. Trade activity was subdued, impacted by liquidity constraints within the steel sector. Furthermore, the suspension of construction activities in Delhi due to air pollution adversely affected the Mandi market, disrupting demand for finished steel.

Raw materials scenario

In Mandi, sponge iron (CDRI) prices decreased by INR 100/t to INR 30,800/t DAP. On the other hand, pig iron (steel-grade) in Ludhiana remained firm at INR 35,500/t DAP.

Steel market overview

Steel ingot prices in Mandi fell by INR 100/t to INR 42,400/t DAP during the market reporting and normalisation period. Meanwhile, in other major markets, semi-finished steel tags recorded a d-o-d decrease of INR 100-400/t.

Rebar (Fe 500) prices in Mandi Gobindgarh remained firm d-o-d at INR 47,100/t exw today. During today's trading session, the finished steel market witnessed lukewarm demand as buyers adopted a cautious stance due to prevailing market uncertainties.

Overview of others market

Prices for Rebar (Fe 500) on the Mumbai IF route remained stable at INR 47,300/t exw. Limited trading activities was seen in the market for finished steel as buyers remained cautious and waiting for further clarity in the market . The current pricing of scrap (HMS 80:20) is INR 33,000/t DAP. Conversion Spread between scrap and billet is around INR 9,700/t.

Durgapur: The overall market was volatile throughout the week and trading activities remained firm. Billet prices slips by INR 100/t to INR 39,300/t DAP, while rebar (Fe500) prices dipped by INR 100/t to INR 41,800/t Exw.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,200-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365/t-$366/t, which equates to approximately INR 33,365/t (including freight). Local HMS (80:20) in Mumbai up by INR 200/t to INR 33,000/t DAP. Indicative prices of shredded from Europe stood at $385-$388/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 14,350/t.

To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.