India: BigMint's ferrous scrap index drops by INR 100/t d-o-d

• Steelmakers procure moderate volumes of scrap
  
  
• Liquidity shortfalls keeps market under pressure
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 100/tonne (t) d-o-d to INR 36,700/t ($427/t) DAP on 9 January 2025. Overall, the market was stable, with minor fluctuations observed in raw material and semi-finished steel prices. Steelmakers bought scrap at moderate levels, with the market under liquidity pressure due to weak sales of finished steel.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi decreased 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 36,000/t DAP.

Steel market overview

Steel ingot prices in Mandi remained stable d-o-d at INR 42,000/t DAP during the market reporting and normalisation phase. Meanwhile, in other major markets, semi-finished steel tags recorded a d-o-d decrease of INR 100-300/t.

Rebar (Fe 500) prices in Mandi Gobindgarh stood at INR 46,600/t exw, a d-o-d decrease of INR 200/t. The market remained subdued throughout the day.

Overview of other markets

Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 500/t d-o-d on 9 January 2025. According to BigMint's assessment, HMS (80:20) stood at INR 33,500/t ($390/t) ex-yard. Following a period of limited trade in semi-finished and finished steel, prices of the same decreased in the region. Average trade activity in scrap further dampened market sentiment, prompting suppliers to reduce their offers today.

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 $358-365/t, which equates to approximately INR 33,400/t (including freight). Local HMS (80:20) in Mumbai fell by INR 100/t to INR 32,100/t DAP. Indicative prices of shredded from Europe stood at $380-$383/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 14,550/t.

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

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