India: BigMint's scrap index up INR 200/t as market recovery signs gradually emerge

• Sponge prices rise by INR 200/t
  
  
• Semis, finished steel prices up INR 200-300/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, edged up by INR 200/tonne (t) d-o-d to INR 36,000/t DAP on 3 December 2024. The Mandi-based steel mills are increasingly turning to domestic scrap procurement, driven by an upward trend in steel prices over the past two days.

A mill owner informed: "The steel market is showing signs of recovery as prices appear to have bottomed out. Increased inquiries from neighbouring states signal a moderate uptick in trade activity. While steelmakers remain cautious due to sluggish demand, the current market sentiment is an improvement compared to last week. The steps to combat air pollution in Delhi and the surrounding areas, have been affecting the steel industry. Restrictions under GRAP, such as limitations on industrial operations and construction activities, have slowed demand for steel, particularly in the project segment, which is also effecting the trade flow in Mandi."

Raw materials scenario

Sponge iron (CDRI) prices in Mandi increased by INR 200/t to INR 30,400/t DAP today. Meanwhile, pig iron (steel-grade) in Ludhiana remained firm at INR 37,200/t DAP.

Steel market overview

Steel ingot prices in Mandi increased by INR 200/t d-o-d to INR 41,500/t DAP. Semi-finished steel prices across markets rose by INR 100-500/t d-o-d.

Rebar (Fe 500) prices in Mandi jumped by INR 300/t to INR 46,100/t exw amid still decent trades observed in the market.

Overview of Alang market

The Alang market in Gujarat witnessed a INR 200/t increase in ship-breaking melting scrap prices on 4 December. HMS (80:20) is now valued at INR 34,500/t ex-yard. This rise comes on the back of robust trading activity in the semi-finished and finished steel sectors, alongside growing demand from Bhavnagar mills, prompting suppliers to raise their offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,500-5,800/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360-365/t, which equates to approximately INR 33,137/t (including freight). Local scrap HMS (80:20) in Mumbai edge up by INR 100/t to INR 32,400/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 14,050/t.

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