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India: BigMint's scrap index rises INR 300/t amid decent steel demand

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Melting Scrap
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16 Dec 2024, 19:07 IST
India: BigMint's scrap index rises INR 300/t amid decent steel demand

  • Sponge iron prices rise by INR 200/t

  • Semis, finished steel prices up INR 200-300/t d-o-d

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market moved up by INR 300/t to INR 36,900/t DAP on 16 December 2024.

The last trading session proved favourable for Mandi steelmakers, with strong spot demand driving activity in the market. However, today's market witnessed moderate demand, with decent trade inquiries observed. Mills remain optimistic, anticipating ingot prices to hover around INR 41,700/t-42,500/t in the near term.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi moved up by INR 200/t to INR 30,700/t DAP today. Meanwhile, pig iron (steel-grade) prices in Ludhiana fell by INR 400/t to INR 35,800/t DAP.

Steel market overview

Steel ingot prices in Mandi increased by INR 200/t to INR 42,200/t DAP during the market reporting and normalisation phase. Semi-finished steel prices saw an upward trend today, rising by INR 100-900/t day-on-day. The Muzaffarnagar semi-finished market recorded a significant increase of INR 900/t, marking the largest price gain in today's market.

Rebar (Fe 500) prices in Mandi Gobindgarh surged by INR 300/t to INR 46,800/t ex-works today. The price rise is attributed to moderate trade activity observed in the market, signaling steady demand momentum.

Overview of Alang market

On 16 December 2024, Gujarat's Alang market saw ship-breaking melting scrap prices climb INR 500/t compared to the previous day, BigMint reports. HMS (80:20) was priced at INR 34,500/t ($407/t) ex-yard. A combination of moderate demand for steel products and sustained interest from Bhavnagar-based mills pushed suppliers to revise their offers upward.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360/t-361/t, which equates to approximately INR 32,858/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,800/t DAP. Indicative prices of shredded from Europe stood at $380/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 14,200/t.

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

16 Dec 2024, 19:07 IST

 

 

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