India: BigMint's ferrous scrap index rises INR 200/t amid moderate trading

• Tight liquidity keeps trading volume muted
  
  
• Rolling mills opt for night ops on power costs
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose by INR 200/tonne (t) d-o-d to INR 36,800/t DAP on 27 December 2024.

The steel market in Mandi remained range-bound, with raw material and semi-finished steel prices experiencing slight variations, while finished steel prices maintained stability. Trade volumes were modest, hindered by tight liquidity in the sector. In response to high electricity costs during the day, standalone rolling units have shifted to 12-hour night operations. Additionally, mills, facing inventory pressures, have introduced attractive year-end discounts and rebates to encourage buying.

Raw materials scenario

In Mandi, sponge iron (CDRI) prices moved up by INR 100/t to INR 30,800/t DAP. On the other hand, pig iron (steel-grade) in Ludhiana remained firm at INR 36,000/t DAP.

Steel market overview

Steel ingot prices in Mandi surged 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 increase of INR 100/t.

Rebar (Fe 500) prices in Mandi Gobindgarh remained firm d-o-d at INR 47,000/t exw today.

Overview of Alang market

In Alang, Gujarat, ship-breaking melting scrap prices stayed stable for the second straight day on 27 December. According to BigMint, HMS (80:20) was assessed at INR 34,500/t ex-yard. Although semi-finished steel prices declined in the region yesterday, consistent demand from Bhavnagar-based IF steel mills supported the current pricing level.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400-5,700/t.

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

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