India: BigMint's scrap index remains stable d-o-d despite sluggish steel demand

• Raw material prices remain stable d-o-d
  
  
• Semis, finished steel segments witness dull trades
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 36,500/t DAP on 22 January, 2025.

In Mandi, steelmaking primarily utilises a charge mix of 85% scrap and 15% sponge iron. Due to the sluggish market, standalone strip mills have reduced their production to 12 hours daily. Additionally, scrap procurement has shifted to a need-based sourcing, reflecting cautious buying. Steelmakers anticipate that Mandi ingot prices will remain rangebound between INR 41,700 to INR 42,300 in the near term.

Raw material price updates

Sponge iron (CDRI) prices in the Mandi market dipped INR 200/t to INR 30,000/t DAP, while steel-grade pig iron tags in Ludhiana fell by INR 200/t to INR 34,800/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh remained stable at INR 41,900/t DAP during the reporting and normalisation period. Meanwhile, semi-finished steel prices in other major markets fell by INR 50-200/t d-o-d.

Rebar (Fe 500) prices in Mandi Gobindgarh saw a marginal dip of INR 100/t d-o-d to settle at INR 46,300/t exw amid weak demand.

Overview of other markets

In Alang, Gujarat, ship-breaking melting scrap prices held steady on 22 January, as per BigMint's assessment. HMS (80:20) was priced at INR 33,200/ton ex-yard. Stability in semi-finished and finished steel prices, coupled with moderate scrap trade, encouraged suppliers to maintain firm offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $350-355/t, which equates to approximately INR 32,700/t (including freight). Local HMS (80:20) in Mumbai fell by INR 200/t d-o-d to INR 31,700/t DAP. Indicative prices of shredded from Europe stood at $370-$375/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 14,450/t.

To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here

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