India: BigMint's scrap index dips INR 200/t d-o-d on muted steel demand

• Raw material prices remain stable d-o-d
  
  
• Semis, finished steel prices decline by INR 200-300/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 200/tonne (t) d-o-d to INR 37,400/t DAP on 3 January, 2025.

A mill owner informed: "The steel market continues to witness subdued trade activity in both the semi-finished and finished steel segments, pushing sellers to lower prices amid weak buyer participation. In Mandi Gobindgarh, scrap procurement by mills remains moderate, with steelmakers utilising approximately 85% scrap and 15% sponge iron in their production process. Market sentiment suggests that ingot prices in Mandi are likely to remain range-bound between INR 42,400 and INR 43,000/t this week".

Raw material price updates

In Mandi, sponge iron (CDRI) prices remained stable d-o-d at INR 31,000/t DAP. Similarly, pig iron (steel-grade) in Ludhiana remained constant at INR 36,300/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh fell by INR 200/t to INR 42,700/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices fell by INR 50-400/t d-o-d.

Rebar (Fe 500) prices in Mandi Gobindgarh slipped by INR 300/t to INR 47,300/t exw amid muted buying trend today.

Overview of other market

Melting scrap prices in Alang, Gujarat, remained consistent for the third consecutive day on 3 January, with BigMint recording HMS (80:20) at INR 34,300/t ex-yard. Rising semi-finished steel prices had minimal impact, as Bhavnagar mills prioritised cost-effective domestic scrap, encouraging suppliers to uphold firm pricing.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360-365/t, which equates to approximately INR 33,500/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,500/t DAP. Indicative prices of shredded from Europe stood at $385-$390/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 14,750/t.

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