India: BigMint's scrap index gains 100/t d-o-d in volatile market

• Alternate raw material prices remain stable d-o-d
  
  
• Mix price trends witnessed in semis', finished steels
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose by INR 100/t to INR 37,400/t DAP on 19 December 2024.

A mill owner said: "The Mandi Gobindgarh steel market is witnessing a mixed trend. The semis' market is showing minor upward movement in prices, likely due to increased production costs or slight raw material shortages. However, the finished steel market remains under pressure, with prices experiencing an INR 100/t drop due to subdued demand. Near-term ingot prices still look range-bound at under 42,000/t-42,600/t."

GST inspections have become more stringent in the region, with intensified checks at the Mandi border. As a result, scrap buyers are exercising caution and limiting their purchases to essential requirements.

Raw materials scenario

Prices of sponge iron (CDRI) in Mandi remained stable at INR 30,800/t DAP, with no changes recorded in pig iron (steel-grade) prices in Ludhiana, which stood at INR 35,800/t DAP.

Steel market overview

Steel ingot prices in Mandi rose by INR 100/t to INR 42,600/t DAP during the market reporting and normalisation phase. Meanwhile, semi-finished steel prices saw a d-o-d increase of INR 50/t to INR 300/t across key markets.

Rebar (Fe 500) prices in Mandi Gobindgarh fell by INR 100/t to INR 47,000/t exw today.

Overview of Alang market

Prices of ship-breaking melting scrap in Alang, Gujarat, continued to remain steady for the third day as of 19 December. According to BigMint, HMS (80:20) was priced at INR 34,500/t ex-yard. Despite semi-finished prices rising in other regions, Bhavnagar mills prioritised domestic scrap due to its cost advantage, which kept Alang suppliers away from revising prices.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,200-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365/t-$366/t, which equates to approximately INR 33,349/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,800/t DAP. Indicative prices of shredded from Europe stood at $385-$390/t CFR Nhava Sheva.

As per market sources, "The dock collection levels also increased following winter conditions and approaching holidays. -Prices were heard at Euro 282-283/t delivered to the dock (+7-8 euro higher than last week). France, Germany, Spain, Italy, UK, Switzerland and rest of Europe are bracing for Christmas and New Year holidays from the third week of December till the first week of January 2025.

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 14,550/t.

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