India: BigMint's scrap index falls INR 300/t d-o-d on sluggish steel demand - 4 Feb

• Prices of alternative raw materials drop d-o-d
  
  
• Semis, finished steel prices dip INR 100-200/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined slightly by INR 300/t d-o-d to INR 36,900/t DAP on 4 February 2025.

A mill owner informed: "The Mandi steel market experienced a decline in prices of steel scrap, semi-finished, and finished steel, driven by weak demand in the finished steel segment. The market is also facing liquidity constraints, adding to the overall pressure."

Raw materials scenario

Sponge iron (CDRI) prices in Mandi decreased by INR 200/t to INR 30,200/t (DAP) today. Meanwhile, pig iron (steel-grade) prices in Ludhiana fell by INR 200/t to INR 35,600/t (DAP).

Steel market overview

Steel ingot prices in Mandi Gobindgarh decreased by INR 200/t d-o-d to INR 42,400/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices fell by INR 100-300/t d-o-d.

The Mandi market witnessed a d-o-d decline of INR 100/t in rebar (Fe 500) prices, bringing them down to INR 47,100/t (ex-works).

Overview of other markets

Ship-breaking melting scrap prices in Gujarat's Alang fell by INR 200/t d-o-d on 4 February, according to BigMint's assessment, HMS (80:20) prices stand at INR 33,200/t ($381/t) exy. The decline in semi-finished and finished steel prices in yesterday's session due to restricted demand influenced the scrap market as well. With moderate trade activity in scrap, suppliers have had to adjust by reducing their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,400-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $355-359/t, which equates to approximately INR 33,300/t (including freight). Local HMS (80:20) prices in Mumbai remained stable d-o-d at INR 32,000/t DAP. Indicative prices of shredded from Europe stood at $374-$376/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 14,100/t.

To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - support@bigmint.co