India: BigMint's scrap index improves by INR 400/t amid moderate trade inquiries

• Sponge iron prices increase by INR 100/t
  
  
• Semis, finished prices up INR 300-400/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 400/t to INR 36,900/t DAP on 18 December 2024.

Today's mandi market witnessed heightened GST raids and border checks, adding pressure to an already stressed steel industry. Many mills are struggling with subdued sales as demand for finished steel remains weak.

However, buying activity has shown slight improvement in the region over the past 2-3 days. Rolling mills are currently operating at reduced capacity, limited to 12-hour shifts, due to unsatisfactory demand levels in key markets.

On a positive note, prices have seen a marginal uptick today, with ingot rates increasing by INR300/t d-o-d, driven by spot demand in the market, while demand remains moderate.

Raw materials scenario

Prices of sponge iron (CDRI) in Mandi went up marginally by INR 100/t to 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 300/t to INR 42,500/t DAP during the market reporting and normalisation phase. Meanwhile, semi-finished steel prices saw a d-o-d increase of INR 400/t to INR 600/t across key markets.

Rebar (Fe 500) prices in Mandi Gobindgarh climbed by INR 400/t to INR 47,100/t exw today.

Overview of Alang market

On 18 December, 2024, ship-breaking melting scrap prices in Alang, Gujarat, saw no change d-o-d, with HMS (80:20) priced at INR 34,500/t ex-yard, according to BigMint's assessment. The region saw moderate trade in semi-finished and finished steel. Furthermore, Bhavnagar-based IF steel mills showed a moderate interest in scrap, which encouraged suppliers to keep prices steady.

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 33,294/t (including freight). Local HMS (80:20) in Mumbai rose by INR 300/t to 32,800/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 14,350/t.

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