India: BigMint's ferrous scrap index gains INR 200/t on decent steel demand

• Raw material prices improve by INR 100-200/t
  
  
• Semis, finished steel prices up INR 200/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 200/t to INR 36,900/tonne (t) DAP on 24 January 2025. A mill owner informed that moderate buying inquiries have continued over the past two days, but the market has remained range-bound. While prices have shown some improvement, there hasn't been a significant boost in buying activity in the semi-finished and finished steel markets. Additionally, ingot prices in Mandi appear to be fluctuating within the range of INR 41,700/t-42,500/t.

Raw material price updates

In Mandi, sponge iron (CDRI) prices rose by INR 100/t to INR 30,200/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana increased by INR 200/t to INR 35,000/t DAP, signalling a slight upward trend.

Steel market overview

Steel ingot prices in Mandi Gobindgarh increased by INR 200/t, reaching INR 42,300/t DAP during the reporting period. Likewise, semi-finished steel prices in major markets saw a day-on-day rise of INR 150/t-400/t.

Rebar (Fe 500) prices in Mandi Gobindgarh climbed by INR 200/t to INR 46,700/t ex-works, supported by moderate demand and stable buying trends.

Overview of other markets

Prices for Rebar (Fe 500) on the Mumbai IF route market remained stable at INR 46,900/t exw. Moderate trading activities were seen in the market for finished steel as buyers became active as they were not procuring material over the past few days. The current pricing of scrap (HMS 80:20) is INR 31,700/t DAP. Conversion spread between scrap and billet is around INR 10,100/t DAP.

On 24 January, HMS (80:20) prices in Alang, Gujarat, held steady at INR 33,500/t ex-yard. The region witnessed moderate trade in semi-finished and finished steel a day earlier and consistent scrap demand from Bhavnagar-based IF steel mills.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $352-356/t, which equates to approximately INR 32,912/t (including freight). Local HMS (80:20) in Mumbai remained stable d-o-d at INR 31,700/t DAP. Indicative prices of shredded from Europe stood at $374-$376/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 14,600/t.

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