India: BigMint's ferrous scrap index down INR 300/t d-o-d as steel market shows signs of stagnation

• Sponge iron prices dip INR 200/t
  
  
• Weak demand for semis, finished steel continues
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market dropped by INR 300/t to INR 36,100/tonne (t) DAP on 29 November 2024.

A mill owner informed, "The market remained rangebound as anticipated by local mills, with scrap procurement limited to need-based purchases. GST inspections have disrupted operations, further slowing scrap arrivals. Additionally, demand for semi-finished and finished steel continues to remain weak from the last two weeks".

Raw materials scenario

Sponge iron (CDRI) prices in Mandi decreased by INR 200/t to INR 30,600/t (DAP) today. Meanwhile, pig iron (steel-grade) prices in Ludhiana remained stable at INR 37,000/t (DAP).

Steel market overview

Steel ingot prices in Mandi dipped INR 200/t to INR 41,600/t DAP during market reporting and normalisation. Semi-finished steel prices across markets decreased by INR 100-600/t.

Rebar (Fe 500) prices in Mandi held steady at INR 46,300/t ex-works, reflecting limited trade activity in the region.

Overview of other markets

Durgapur: Trading activity in the spot market remained subdued, with minimal movement as buyers adopted a cautious approach. Most opted for need-based purchases due to uncertainty about market trends. Billet prices dropped by INR 300/t to INR 38,250/t DAP, while rebar (Fe500) prices declined by INR 200/t to INR 40,700/t ex-works in Durgapur today.

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged on 29 Nov'24, with HMS (80:20) assessed at INR 34,500/t ex-yard, as per BigMint. Despite a rise in semi-finished steel prices yesterday, trading activity stayed moderate, prompting scrap suppliers to maintain stable offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,500-5,800/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360-365/t, which equates to approximately INR 33,072/t (including freight). Local scrap HMS (80:20) in Mumbai fell by INR 200/t to INR 32,700/t DAP. In India, indicative prices of shredded from Europe stood at $380-$385/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.