India: BigMint's ferrous scrap index drops by INR 100/t d-o-d amid moderate trading

• Buying slows as demand for finished steel softens
  
  
• Ample stocks at mills prompt need-based buying
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 100/tonne (t) d-o-d to INR 37,500/t DAP on 1 January 2025.

A mill owner informed BigMint, "The market was subdued, as buying activity slowed, with demand for finished steel noticeably weaker compared to the past two days. Liquidity challenges continued to weigh on the market, dampening trade. Additionally, mills, facing adequate inventory levels, limited their scrap procurement to immediate requirements, which reflects a cautious approach amid current market conditions."

The source also stated, "Mandi ingot prices are expected to stay range-bound at INR 42,400-43,000/t."

Raw material price updates

In Mandi, sponge iron (CDRI) prices remained stable d-o-d at INR 31,000/t DAP. Similarly, pig iron (steel-grade) in Ludhiana recorded a decrease of INR 100/t d-o-d to INR 36,500/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained stable d-o-d at INR 42,800/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices fluctuated by INR 100-200/t d-o-d.

Rebar (Fe 500) prices in Mandi Gobindgarh stood at INR 47,300/t exw, a d-o-d decrease of INR 200/t. The market remained subdued throughout the day.

Overview of other markets

Prices of ship-breaking melting scrap (HMS 80:20) in Alang, Gujarat, were assessed at INR 34,300/t ex-yard on 1 January 2025. Prices have remained almost stable for the last 1-2 weeks.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360-365/t, which equates to approximately INR 33,392/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,500/t DAP. Indicative prices of shredded from Europe stood at $383-385/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 14,700/t.