India: BigMint's ferrous scrap index falls INR 300/t d-o-d amid sluggish steel demand
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BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, slipped by INR 300/tonne (t) d-o-d to INR 36,800/t DAP on 8 January 2025.
A mill owner informed: "The Mandi steel market experienced a decline in prices for steel scrap, semi-finished, and finished steel, driven by weak demand in the finished steel segment. The market is also facing liquidity constraints, adding to the overall pressure. In the near term, Mandi ingot prices are expected to remain range-bound between INR 41,000-42,600/t, reflecting the cautious sentiment in the market".
Raw material price updates
Sponge iron (CDRI) prices in the Mandi market slid INR 100/t d-o-d to INR 30,700/t DAP. Meanwhile, pig iron (steel-grade) in Ludhiana dipped by INR 100/t to INR 36,000/t DAP.
Steel market overview
Steel ingot prices in Mandi Gobindgarh fell by INR 300/t to INR 42,100/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices fell by INR 150-400/t d-o-d.
Rebar (Fe 500) prices in Mandi Gobindgarh decreased by INR 200/t to INR 46,800/t exw.
Overview of Alang market
Prices for ship-breaking melting scrap in Alang, Gujarat, remained unchanged on 8 January, 2025. BigMint assessed HMS (80:20) at INR 34,000/t ex-yard. Suppliers opted to maintain their price offers as demand for semi-finished and finished steel remained stable amid moderate scrap trade activity.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360-365/t, which equates to approximately INR 33,500/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,200/t DAP. Indicative prices of shredded from Europe stood at $382-$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 14,700/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
