India: BigMint's scrap index stays flat amid stable steel demand

• Sponge iron prices fall by INR 100/t
  
  
• Semis, finished steel prices remain stable d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 37,400/t DAP on 30 January, 2025.

The Mandi steel market saw minimal fluctuations today, with both trading sessions displaying a mixed trend. Ingot prices remained within the range of INR 42,700-42,800/t. Mills are eagerly anticipating the union Budget announcement, expecting that infrastructure and development projects will drive an uptick in steel demand, bringing positive momentum to the sector.

Raw material price updates

Sponge iron (CDRI) prices in Mandi saw a marginal drop of INR 100/t, settling at INR 30,300/t DAP, while steel-grade pig iron prices in Ludhiana remained steady at INR 35,700/t DAP.

Steel market overview

Mandi Gobindgarh's steel ingot prices remained stable d-o-d at INR 42,800/t DAP, as semi-finished steel prices in major markets registered a day-on-day rise of INR 50/t to INR 500/t.

In the region, rebar (Fe 500) prices were stable at INR 47,200/t ex-works, with market activity witnessing moderate levels of buying interest.

Overview of other markets

The price of ship-breaking melting scrap in Alang, Gujarat, remained stable on 30 January, 2025, with HMS (80:20) assessed at INR 33,700/t ex-yard, according to BigMint. A steady trend in semi-finished and finished steel prices, along with moderate trade volumes, influenced suppliers to keep their offers unchanged.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood 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 32,934/t (including freight). Local HMS (80:20) prices in Mumbai remained stable d-o-d at INR 32,000/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 check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.