India: BigMint's ferrous scrap index dips by INR 100/t-18 Nov

• Raw material prices by INR 100-300/t
  
  
• Semi-finished dips by INR 100/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 100/tonne (t) to INR 36,400/t DAP on 18 November 2024.

The steel market continues to face sluggish demand in both semi-finished and finished products, with mills under pressure to make sales due to disrupted liquidity flow.

Similar to semi-finished steel, scrap prices also declined by INR 100-300/t d-o-d, driven by base buying from urgent buyers.

In the near term, prices are expected to remain range-bound, with ingot prices likely hovering in the INR 42,000-42,300/t range.

A mill owner informed: "The unexpected decline in prices following the festive season has left scrap suppliers uncertain about whether to operate at current reduced rates or hold off in anticipation of a market recovery. Currently, there is no shortage of domestic scrap. However, if steel prices drop further from these levels, an artificial shortage could emerge as suppliers may hesitate to sell at lower rates."

Raw materials scenario

Sponge iron (CDRI) prices in Mandi dropped by INR 100/t to INR 31,200/t (DAP) today. Meanwhile, pig iron (steel-grade) prices in Ludhiana decreased by INR 300/t to INR 38,200/t (DAP).

Raw material charge mix

Mandi Gobindgarh

Scrap usage: 80%-85%

Sponge iron usage: 15%-20%

Ludhiana

Busheling scrap: 90%-95% (for special steel grades)

Steel market overview

Steel ingot prices in Mandi fell by INR 100/t to INR 42,000/t DAP during today's price reporting and normalisation. Semi-finished steel prices across markets witnessed a mixed trend.

Rebar (Fe 500) prices in Mandi remained stable at INR 46,700/t ex-works.

Ship-breaking scrap market trends

As of 18 November, ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d, with HMS (80:20) assessed at INR 34,300/t ($406/t) ex-yard, according to BigMint. Semi-finished and finished steel prices in the region also held steady in the previous trading session. Moderate trade activity in scrap led suppliers to maintain their current offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,600-5,900/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-367/t, which equates to approximately INR 33,181/t (including freight). Local scrap HMS (80:20) in Mumbai decreased by INR 200/t to INR 32,500/t DAP. In India, indicative prices of shredded from Europe stood at $385-$390/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 13,750/t.

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