India: BigMint's scrap index climbs another INR 200/t as steel demand improves-14 Jan

• Sponge iron prices edge up by INR 100/t
  
  
• Semis, finished steel prices rise by INR 100-200/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 200/tonne (t) d-o-d to INR 36,900/t DAP on 14 January 2025.

A mill owner informed: "Compared to yesterday, the steel market witnessed a noticeable uptick in demand today. Prices for both semi-finished and finished steel rose by INR 100/t-INR 200/t, signalling improved market activity. In the Mandi Gobindgarh steel market, scrap procurement has also picked up, with moderate trade inquiries observed. Buyers are predominantly opting for domestic scrap, due to its easy availability and lower costs compared to imported options."

Going forward, Mandi ingot prices are expected to hover in the range of INR 41,800-42,500/t. Improved sentiments point to a steady but cautious market momentum in the near term.

Raw material price updates

In Mandi, sponge iron (CDRI) prices moved up by INR 100/t to INR 30,400/t DAP. Meanwhile, pig iron (steel-grade) in Ludhiana dipped INR 300/t to INR 35,400/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh surged by INR 100/t to INR 42,200/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices were up by INR 100-400/t d-o-d.

Today, rebar (Fe 500) prices in Mandi Gobindgarh improved by INR 200/t to INR 46,700/t exw. Moderate trade observed in finished steel.

Overview of Mumbai market

Prices for rebar (Fe 500) on the Mumbai IF-route steel market remained stable at INR 47,000/t exw. Limited trading activity was seen in the market for finished steel as buyers remained cautious, waiting for further clarity on prices. The current pricing of scrap (HMS 80:20) is INR 32,000/t DAP. Conversion spread between scrap and billet is around INR 10,100/t DAP.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $350-355/t, which equates to approximately INR 33,415/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,000/t DAP. Indicative prices of shredded from Europe stood at $373-$375/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.