India: BigMint's scrap index jumps by INR 600/t d-o-d as steel prices improve - 5 Dec
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- Sponge prices increase by INR 300/t
- Semis, finished steel rises INR 400/t
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed up by INR 600/tonne (t) d-o-d to INR 36,600/t DAP on 5 December 2024. Mills procured domestic scrap in significant volumes as improved steel prices boosted activity. Additionally, the rise in scrap supply led to an increase in offers.
A mill owner stated, "Active trades were observed in the Mandi steel market today, with buyers regaining momentum after a pause caused by Delhi's GRAP-related restrictions on construction and infrastructure development. The market has been experiencing higher activity for the past three days. Trading may improve further in the near term, with Mandi ingot prices expected to touch INR 42,100-42,500/t. Mills are optimistic about the increase in demand for steel, which is supporting this uptrend."
Raw materials scenario
Sponge iron (CDRI) prices in Mandi increased by INR 300/t d-o-d to INR 30,700/t DAP today. Meanwhile, pig iron (steel-grade) in Ludhiana fell by INR 200/t d-o-d to INR 37,000/t DAP.
Steel market overview
Steel ingot prices in Mandi increased by INR 400/t d-o-d to INR 42,000/t DAP. Similarly, semi-finished steel prices rose INR 300-500/t d-o-d across markets.
The Mandi market saw an INR 400/t d-o-d surge in rebar (Fe 500) prices to INR 46,500/t exw, supported by above-average trade inquiries.
Overview of Alang market
The Alang market in Gujarat witnessed an uptick of INR 300/t in ship-breaking melting scrap prices on 5 December, as per BigMint's assessment. HMS (80:20) stood at INR 34,800/t ex-yard. The rise in regional semi-finished steel prices, by INR 300-400/t d-o-d, yesterday and steady inquiries from Bhavnagar mills contributed to higher offers from suppliers.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360-365/t, which equates to approximately INR 33,107/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable d-o-d at INR 32,500/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 14,150/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
