India: BigMint's ferrous scrap index edges up by INR 400/t as steel prices strengthen

• Sponge iron prices up INR 200/t
  
  
• Semis, finished steel prices rise INR 300-400/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed INR 400/tonne (t) d-o-d to INR 38,800/t DAP on 14 October 2024.

In the Mandi market, tight supply of scrap persists as mills continue to procure average volumes while also utilising sponge iron for steel production. Ongoing GST inspections at Mandi's borders are restricting scrap arrivals in the region, contributing to a slight increase in scrap and ingot prices today. Demand in the steel sector saw an improvement today compared to the last trading session.

Raw materials overview

Sponge iron (CDRI) prices in the Mandi market rose by INR 200/t to INR 33,700/t DAP. In contrast, pig iron (steel-grade) prices in Ludhiana remained stable at INR 40,300/t DAP.

Steel market overview

Steel ingot prices rose by INR 400/t to INR 44,400/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other major markets moved up by INR 200 to INR 900/t d-o-d, with the most notable increase of approximately INR 900/t occurring in the semi-finished steel market of Ghaziabad.

Rebar (Fe 500) prices in Mandi jumped by INR 300/t d-o-d to INR 49,000/t exw.

Overview of Jalna market

In the Jalna market in western India, billet prices rose by INR 200/t, reaching INR 43,800/t, while rebar prices held steady at INR 49,300/t. HMS 80:20 scrap prices also increased slightly by INR 300/t, reaching INR 33,500/t. According to sources, trade in rebar remained moderate today. Several mills have secured substantial quantities of imported scrap, which have already begun to arrive. As a result, mills are not pushing for higher prices on domestic scrap purchases.

Price highlights

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

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $375-$380/t, which equates to approximately INR 34,137/t (including freight). Local scrap HMS (80:20) prices in Mumbai up by INR 500/t d-o-d to INR 33,900/t DAP. In India, indicative prices of shredded scrap from Europe stood at $395-$400/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 13,600/t.

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