India: BigMint's scrap index gains INR 200/t amid steady market activity

• Sponge iron prices remain remain steady in Mandi
  
  
• Semi-finished steel prices up INR 300/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed INR 200/tonne (t) d-o-d to INR 35,800/t DAP on 3 December 2024.

The Mandi steel market witnessed a slight uptick in trade activity, particularly in the scrap segment, as mills procured scrap in moderate-to-decent volumes, anticipating a near-term price recovery. Semi-finished steel prices rose by INR 300/t d-o-d, reflecting a minor improvement in sentiment. Meanwhile, the finished steel market remained steady, with moderate trade activity and a stable price range.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi remained stable at INR 30,200/t DAP today. Meanwhile, pig iron (steel-grade) in Ludhiana moved up by INR 300/t to INR 37,200/t DAP.

Steel market overview

Steel ingot prices in Mandi increased by INR 300/t d-o-d to INR 41,300/t DAP. Semi-finished steel prices across markets rose by INR 200-500/t d-o-d.

Rebar (Fe 500) prices in Mandi remained stable at INR 45,800/t exw amid moderate trade.

Overview of other markets

The Alang market in Gujarat witnessed a decline in melting scrap prices by INR 200/t on 3 December 2024. BigMint's data shows HMS (80:20) priced at INR 34,300/t ex-yard. The downward trend in semi-finished steel prices, which dropped INR 300-400/t, and average trade activity, led to reduced supplier offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,500-5,800/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360-365/t, which equates to approximately INR 33,109/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable d-o-d at INR 32,300/t DAP. In India, indicative prices of shredded from Europe stood at $380-$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 13,900/t.

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