India: BigMint's scrap index up INR 300/t d-o-d despite prevailing uncertainty -28 Nov

• GST checks instill caution in Mandi market
  
  
• Semis, finished steel prices rise INR 100-200/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market increased by INR 300/t to INR 36,400/tonne (t) DAP on 28 November 2024. The steel market witnessed a modest upward movement today, with ingot and scrap prices increasing by INR 200-300/t. However, the overall sentiment remains uncertain, as mills anticipate a range-bound market, with ingot prices staying below INR 42,000/t.

A shortage of scrap has surfaced following the GST checks against several non-billing vehicles yesterday. While this has tightened scrap availability, market experts suggest that prices are unlikely to rise significantly in the near term due to weak demand for finished steel products.

Manufacturers and traders should monitor the situation closely, as regulatory actions and subdued demand may continue to influence market dynamics.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi remained stable at INR 30,800/t (DAP) today. Meanwhile, pig iron (steel-grade) prices in Ludhiana decreased by INR 400/t to INR 37,000/t (DAP).

Steel market overview

Steel ingot prices in Mandi up by INR 200/t to INR 41,900/t DAP during market reporting and normalisation. Semi-finished steel prices across markets moved up by INR 100-400/t.

Rebar (Fe 500) prices in Mandi marginally increased by INR 100/t INR 46,300/t ex-works.

Overview of Alang market

On 28 November, Gujarat's Alang market saw melting scrap prices increase by INR 100/t to INR 34,500/t (ex-yard), according to BigMint. Suppliers hiked their offers due to moderate trading activity in semi-finished and finished steel and sustained interest from Bhavnagar-based buyers.

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 33,030/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable at INR 32,900/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 14,100/t.

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