India: BigMint scrap index up INR 500/t; steel market sees moderate trade amid slight demand dip

• Raw material prices rise by INR 200-500/t
  
  
• Semis, finished head north by INR 400-600/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed by INR 500/t to INR 36,600/t DAP on 8 November 2024. The Mandi steel market experienced moderate trading today, showing a slight decline in demand compared to yesterday's session. Mills are actively procuring scrap in reasonable volumes, driven by the fact that suppliers are raising their offers in response to the recent increase in semi-finished steel prices. Looking ahead, the market is expected to remain stable with moderate activity, though minor fluctuations may occur throughout the week.

Raw materials scenario

Today, sponge iron (CDRI) prices in Mandi increased by INR 200/t to INR 32,200/t DAP. Meanwhile, pig iron (steel-grade) prices in Ludhiana saw a substantial rise of INR 500/t to INR 39,500/t DAP.

Steel market overview

Steel ingot prices in Mandi edged up by INR 400/t to INR 42,800/t DAP during today's price reporting and normalisation. Semi-finished steel prices across markets similarly rose by INR 300/t to INR 1,000/t compared to the previous day. The Mumbai semi-finished steel market saw a notable increase of INR 1,000/t today.

Today, rebar (Fe 500) prices in Mandi surged by INR 600/t to INR 47,500/t ex-works. However, despite the price hike, trade activity remains steady but somewhat restrained, as buyers are cautious at these elevated price levels.

Overview of other markets

As per BigMint's assessment, ship-breaking melting scrap prices in Gujarat's Alang market rose by INR 500/t d-o-d on 8 November. HMS (80:20) prices reached INR 34,500/t ex-yard. The region saw a boost in transactions for both semi-finished and finished steel during yesterday's trading session. Additionally, active buying inquiries for scrap led suppliers to raise their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,700-5,900/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,840/t (including freight). Local scrap HMS (80:20) in Mumbai increased by INR 300/t to INR 33,000/t DAP. In India, indicative prices of shredded from Europe stood at $390-$395/t CFR Nhava Sheva.

India's imported scrap demand climbed as buyers showed active interest, spurred by tight domestic supplies and concerns over potential price rises following the US elections. In the domestic market, a rise in steel demand, coupled with primary mills raising finished steel prices by up to INR 1,000-1,500/t for November, boosted market sentiments.

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,150/t.

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