India: BigMint's ferrous scrap index rises INR 100/t d-o-d -24 Oct

• Raw material prices drop d-o-d
  
  
• Semi-finished steel prices remain steady
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose marginally by INR 100/tonne (t) d-o-d to INR 36,700/t DAP on 24 October 2024.

The first half of today's trading session was relatively inactive as buyers waited for prices to drop further. In the latter half, steelmakers adjusted their offers downward, which led to a noticeable increase in spot demand and moderate trading in the market.

A steel mill official told BigMint:"Mills are sourcing scrap at essentially base levels due to weak steel demand, while the overall market has experienced pressure over the past week. Steelmakers are optimistic that steel ingot prices will rise again, although the market remains below the INR 43,000 level".

Raw materials scenario

Today, prices of sponge iron (CDRI) in the Mandi market decreased by INR 200/t to INR 32,600/t DAP. In contrast, pig iron (steel-grade) in Ludhiana dropped INR 100/t to INR 38,900/t DAP.

Steel market overview

Today, steel ingot prices in Mandi remained stable at INR 42,700/t DAP during the price reporting and normalisation phase. Prices of semi-finished steel across markets dropped by INR 100/t d-o-d to INR 400/t, while the Muzaffarnagar & Ghaziabad semi-finished market witnessed a marked decrease of INR 400/t today.

Rebar (Fe 500) prices in the Mandi market dipped INR 400/t to INR 47,500/t exw today.

Overview of other markets

On 24 October, melting scrap prices in Gujarat's Alang dropped by INR 300/t d-o-d. As per BigMint's assessment, HMS (80:20) is now priced at INR 33,000/t ex-yard. Yesterday's trading session experienced minimal transactions as demand for semi-finished and finished steel remained low, causing suppliers to adjust their offers downward in light of average scrap trading conditions.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 6,000-6,100/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,727/t (including freight). Local scrap HMS (80:20) in Mumbai fell by INR 200/t d-o-d to INR 32,500/t DAP. In India, indicative prices of shredded from Europe stood at $390-$395/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 13,150/t.

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