India: BigMint's scrap index edges up by INR 100/t d-o-d amid stable market sentiments

• Sponge iron prices remain stable d-o-d
  
  
• Steel ingot, rebar prices hold firm d-o-d

  
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose slightly by INR 100/tonne (t) d-o-d to INR 37,100/t DAP on 7 January 2025.

The Mandi steel market remained range-bound in the first week of the year, with only minor price fluctuations observed. Large mills continued with routine production and scrap procurement, while medium-sized mills operated under 12-hour production schedules due to liquidity challenges in key markets. Ingot prices in Mandi are expected to remain stable in the near term at INR 42,200-42,800/t.

A mill owner informed, "Production levels have seen a notable rise across India in key steelmaking products such as pellets, sponge iron, TMT bars, and billets. However, despite the surge in supply, demand is not expected to improve in the immediate term. The market will likely require several months to absorb the increased production, and we do not expect a significant uptick in demand until then. This market adjustment period is crucial for balancing supply and demand dynamics."

Raw material price updates

In Mandi, sponge iron (CDRI) prices remained stable d-o-d at INR 30,800/t DAP. Meanwhile, pig iron (steel-grade) in Ludhiana slipped by INR 200/t to INR 36,100/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained stable d-o-d at INR 42,400/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices fell by INR 50-100/t d-o-d.

Rebar (Fe 500) prices in Mandi Gobindgarh remained firm d-o-d at INR 47,000/t exw.

Overview of Alang market

According to BigMint, ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 7 January 2025. HMS (80:20) was priced at INR 34,000/t ex-yard. Stable steel market trends and moderate scrap trading led suppliers to keep their offers unchanged.

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 33,495/t (including freight). Local HMS (80:20) in Mumbai fell by INR 100/t d-o-d to INR 32,200/t DAP. Indicative prices of shredded from Europe stood at $382-$387/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 14,800/t.

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