India: BigMint's scrap index drops INR 100/t d-o-d on weak steel demand

• Sponge iron prices remain steady d-o-d
  
  
• Semi-finished steel prices dip INR 100/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined INR 100/tonne (t) d-o-d to INR 36,600/t DAP on 25 October 2024. The scrap sector is facing challenges due to slow purchases by mills and subdued demand for finished steel, putting pressure on both traders and mills. Mandi ingot prices are expected to remain in the range of INR 42,500/t to 43,000/t, with no major demand observed over the last week.

Raw materials scenario

Today, prices of sponge iron (CDRI) in the Mandi remained stable at INR 32,600/t DAP. In contrast, pig iron (steel-grade) in Ludhiana rose sharply by INR 100/t d-o-d to INR 39,000/t DAP.

Steel market overview

Today, steel ingot prices in Mandi dipped INR 100/t to INR 42,600/t DAP during the price reporting and normalisation phase. Prices of semi-finished steel across markets moved up by INR 100/t d-o-d to INR 200/t.

Rebar (Fe 500) prices in Mandi remained stable at INR 47,500/t exw today amid moderate trade.

Overview of other markets

The Alang market in Gujarat saw a d-o-d increase of INR 200/t in ship-breaking melting scrap prices on 25 October. HMS (80:20) prices are now at INR 33,200/t ex-yards. Demand for semi-finished and finished steel remained moderate, and strong interest from Bhavnagar-based mills for scrap contributed to suppliers raising their offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 6,000-6,100/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,728/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable at INR 32,500/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 13,150/t.

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