India: BigMint's scrap index down INR 200/t amid modest inquiries-14 Nov

• Semis, finished steel witness subdued demand
  
  
• Market activity remains muted due to festival
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 200/t to INR 36,900/t DAP on 14 November 2024. Trading in the Mandi steel market remained slow throughout both halves of the trading session, with buyers largely inactive over the past few days.

Demand from neighbouring states was also subdued. Market activity in Mandi and Ludhiana is expected to remain muted tomorrow due to the Guru Nanak Jayanti celebrations.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi remained stable at INR 31,800/t DAP today. However, pig iron (steel-grade) prices in Ludhiana saw a decline of INR 350/t to INR 38,900/t DAP, reflecting a dip in market demand.

Raw material charge mix

Mandi Gobindgarh

Scrap usage: 80%-85%

Sponge iron usage: 15%-20%

Ludhiana

Busheling scrap: 90%-95% (for special steel grades)

Steel market overview

Steel ingot prices in Mandi decreased by INR 200/t to INR 42,500/t DAP during today's price reporting and normalisation. Semi-finished steel prices across markets similarly fell by INR 100/t to INR 400/t compared to the previous day.

Rebar (Fe 500) prices in Mandi dropped by INR 300/t d-o-d to INR 47,200/t ex-works. The decline comes amid sluggish trading activity over the past few days, reflecting weaker demand in the market.

Ship-breaking scrap market trends

As of 14 Nov'24, ship-breaking scrap prices in Gujarat's Alang market fell by INR 200/t d-o-d, with HMS (80:20) assessed at INR 34,500/t ($409/t) ex-yard, according to BigMint. Semi-finished steel prices also declined by INR 400-600/t amid limited demand. Average trade activity in scrap prompted suppliers to lower their offers, reflecting cautious sentiment in the market.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,600-5,900/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,866/t (including freight). Local scrap HMS (80:20) in Mumbai decreased by INR 200/t to INR 33,000/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 13,550/t.

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