India: BigMint's scrap index up INR 200/t despite sluggish demand

• Sponge iron prices up INR 200/t in Mandi
  
  
• Semis, finished steel prices rise by INR 100/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose marginally by INR 200/tonne (t) d-o-d to INR 36,500/t DAP on 12 December 2024. Today's market saw slight improvements in scrap, semi-finished, and finished steel prices, but buyer activity remained subdued due to sluggish demand in the Mandi market. The local market showed minor impact, with standalone rolling mills affected due to regional strikes.

Raw materials scenario

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

Steel market overview

Steel ingot prices in Mandi edged up by INR 100/t to INR 41,800/t DAP during the market reporting and normalisation phase. Semi-finished steel prices increased by INR 50-400/t d-o-d across various markets.

Rebar (Fe 500) prices in the Mandi slightly rose by INR 100/t d-o-d INR 46,300/t exw.

Overview of Alang market

As per BigMint's assessment, Gujarat's Alang market recorded a rise of INR 200/t in ship-breaking melting scrap prices on 12 Dec'24. HMS (80:20) was valued at INR 34,200/t ex-yard. Increased inquiries from Bhavnagar mills and steady demand for semi-finished and finished steel encouraged suppliers to hike prices.

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 32,758/t (including freight). Local HMS (80:20) in Mumbai rose by INR 300/t to INR 32,600/t DAP. In India, 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 13,950/t.

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