India: BigMint's scrap index stays stable but soft steel demand weighs on market

• Sponge iron prices remain unchanged d-o-d
  
  
• Semis, finished steel prices witness stability
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market remained steady d-o-d at INR 36,500/t DAP on 13 December 2024.

Today, the scrap market remained steady with average trading activity observed in semi-finished steel. Mills are procuring scrap but inventory pressure persists in key markets. Weak demand for finished steel continues to strain mills, intensifying liquidity concerns. Steelmakers anticipate a range-bound trend, with ingot prices hovering between INR 41,500/t-42,200/t.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi remained stable at INR 30,500/t DAP today. Meanwhile, pig iron (steel-grade) prices in Ludhiana fell by INR 200/t to INR 36,200/t DAP.

Steel market overview

Steel ingot prices in Mandi remained unchanged at INR 41,800/t DAP during the market reporting and normalisation phase. Semi-finished steel prices exhibited a mixed trend today, with some regions seeing an uptick while others experienced a decline.

Rebar (Fe 500) prices in Mandi remains steady at INR 46,300/t exw.

Overview of Mumbai market

Prices for IF rebar (Fe 500) in the Mumbai steel market increased by INR 400/t at INR 46,700/t exw. Moderate trade activity was seen in the market for finished steel. Additionally, the price of billets went up by INR 100/t d-o-d to INR 41,800/t DAP. The current price of scrap (HMS 80:20) is INR 32,800/t DAP. Conversion spread between scrap and billet is around INR 9,000/t.

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, which equates to approximately INR 32,726/t (including freight). Local HMS (80:20) in Mumbai rose by INR 200/t to 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 14,250/t.

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