India: BigMint's scrap index increase by INR 100/t even as steel demand remains stable

• Sponge iron prices remain unchanged today
  
  
• Finished steel prices up INR 300/t d-o-d
  
  

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 2 January.

A mill owner informed, "The overall steel market in Mandi appears to be stable, with mills continuing their routine procurement of scrap. Demand for finished steel remains moderate, though prices are expected to trend higher. Secondary mills are closely monitoring primary mills, as any price hikes by the latter are critical for the secondary market rates. Demand from project-based sectors is playing a significant role in shaping the steel industry's dynamics."

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 minor decrease of INR 50/t d-o-d to INR 36,300/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained stable d-o-d at INR 42,800/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices increased by INR 100-200/t d-o-d.

Rebar (Fe 500) prices in Mandi Gobindgarh increased by INR 300/t to INR 47,600/t exw.

Overview of other markets

Mumbai's IF route rebar (Fe 500) prices remained stable at INR 47,500/t exw d-o-d. Limited trading activities were seen in the finished segment in the spot market. Scrap (HMS 80:20) prices are hovering in the range of INR 32,500/t DAP. Conversion spread from scrap to billet stands at around INR 10,500/t.

On 2 January, prices of ship-breaking melting scrap in Alang, Gujarat, remained steady d-o-d. BigMint's report indicates that HMS (80:20) rates are at INR 34,300/t ex-yard. Trade activity in semi-finished and finished steel was average, while moderate scrap demand led suppliers to maintain stable price 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 33,500/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 $385-$390/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.