India: BigMint's scrap index declines INR 100/t amid rangebound steel prices

• Alternate raw material prices dip by INR 100/t
  
  
• Semis, finished steel prices remain steady
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined slightly by INR 100/tonne (t) d-o-d to INR 36,700/t DAP on 17 January 2025.

A mill owner informed: "In the Mandi steel market, only minimal price fluctuations were observed this week across semi-finished, finished steel, and scrap. Mills anticipate that the market will remain rangebound in the near term, with no significant price movements expected as ingot prices are expected to remain within the range of INR 41,700-42,500/t DAP".

Raw material price updates

In Mandi, sponge iron (CDRI) prices dropped by INR 100/t to INR 30,200/t DAP. Likewise, steel-grade pig iron prices in Ludhiana declined by INR 100/t to INR 35,100/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained steady at INR 42,000/t DAP during the reporting and normalization period. However, semi-finished steel prices in other major markets saw a decline of INR 50-500/t today.

Additionally, rebar (Fe 500) prices in Mandi Gobindgarh held firm at INR 46,600/t exw.

Overview of Alang market

For the fourth straight day, ship-breaking melting scrap prices in Alang, Gujarat, showed no change on 17 January, 2025. According to BigMint, HMS (80:20) was assessed at INR 33,000/t ex-yard. Semi-finished and finished steel prices also remained stable in yesterday's market, and limited trade activity in scrap encouraged suppliers to keep their pricing steady.

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 $354-356/t, which equates to approximately INR 32,937/t (including freight). Local HMS (80:20) in Mumbai remained stable d-o-d 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 14,550/t.

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