India: BigMint's scrap index falls INR 300/t d-o-d on sluggish steel demand - 6 Jan

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, edged down by INR 300/tonne (t) d-o-d to INR 37,000/t ($432/t) DAP on 6 January, 2025. Steel trading in the Mandi market remained sluggish, with a noticeable decline in demand for finished steel products from neighbouring regions. Liquidity challenges further weighed on trading sentiment.

Additionally, the observance of Shri Gurugobind Singh Ji Prakash Parv had an impact on market activities, leading to reduced trade volumes, as many market participants took part in the celebrations. These factors contributed to a quieter trading atmosphere.

Raw materials overview

Sponge iron (CDRI) prices in the Mandi market fell INR 200/t d-o-d to INR 30,800/t DAP. Meanwhile, pig iron (steel-grade) in Ludhiana remained stable d-o-d at INR 36,300/t DAP today.

Steel market overview

In Mandi, steel ingot tags dipped INR 300/t d-o-d to INR 42,300/t during the price reporting and normalisation phase. On the other hand, prices in other key markets decreased by INR 100-600/t d-o-d today, with the most significant decline observed in the Rourkela market.

Rebar (Fe 500) prices in Mandi decreased by INR 300/t d-o-d to INR 47,000/t exw amid sluggish trading activity.

Overview of other markets

Ship-breaking melting scrap prices in Gujarat's Alang decreased by INR 300/t d-o-d today. According to BigMint's assessment, HMS (80:20) stood at INR 37,000/t ($432/t) ex-yard. Semi-finished steel prices declined in the region following limited trade activity in the previous session. This, along with average trade activities in scrap, prompted suppliers to reduce their offers today.

Price highlights

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

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-368/t, which equates to approximately INR 33,700/t (including freight). Local scrap HMS (80:20) in Mumbai decreased by INR 100/t to INR 32,300/t DAP. Indicative prices of shredded from Europe stood at $385-$388/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 see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here

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