India: BigMint's scrap index gains INR 100/t amid moderate demand in finished steel

• Mandi steel market remains slow amid inventory pressures
  
  
• Scrap buying holds steady, mills prioritise domestic material
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 100/tonne (t) d-o-d to INR 37,600/t DAP on 31 December 2024 amid moderate demand in the finished steel segment.

A mill owner informed, "The Mandi steel market remains sluggish, as year-end pressures weigh on mills, with many facing inventory challenges. However, the past two days have seen a moderate uptick in trade inquiries. Scrap procurement is steady, with mills prioritising domestic scrap and sourcing from local traders. Ingot prices in Mandi remain stable, at INR 42,500-43,000/t."

Raw material price updates

In Mandi, sponge iron (CDRI) prices remained stable d-o-d at INR 31,000/t DAP. Similarly, pig iron (steel-grade) in Ludhiana recorded a decrease of INR 100/t d-o-d to INR 36,500/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained stable d-o-d at INR 42,900/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices observed a d-o-d increase of INR 100-200/t.

Rebar (Fe 500) prices in Mandi Gobindgarh climbed up by INR 300/t d-o-d to INR 47,500/t exw. The market witnessed improved trade activity in the finished steel segment today.

Overview of other markets

Gujarat's Alang market saw a d-o-d drop of INR 200/t in melting scrap prices on 31 December 2024, with HMS (80:20) assessed at INR 34,300/t ex-yard, according to BigMint. Yesterday's moderate trade in semi-finished and finished steel, combined with steady scrap demand from Bhavnagar mills, led to a reduction in suppliers' offers.

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 33,392/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,500/t DAP. Indicative prices of shredded from Europe stood at $383-385/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 14,700/t.

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