India:BigMint's ferrous scrap index holds firm d-o-d amid stable market trends

• Raw material prices remain stable d-o-d
  
  
• Finished steel prices rise by INR 200/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 37,200/t DAP on 28 January, 2025.

A mill owner informed: "In the Mandi steel market, trade activity for both semi-finished and finished steel remained moderate during both trading sessions, while raw material prices showed no change d-o-d. Ingot prices in Mandi stayed stable in the range of INR 42,200-42,900/t in the near term."

Raw material price updates

In Mandi, sponge iron (CDRI) continued to trade at a stable price of INR 30,400/t DAP, with steel-grade pig iron prices in Ludhiana also holding firm at INR 35,300/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh held firm d-o-d at INR 42,600/t DAP. Meanwhile, semi-finished steel prices across key markets showed a mixed trend, with some witnessing increases while others remained stable or experienced slight declines.

Rebar (Fe 500) prices in Mandi Gobindgarh increased by INR 200/t d-o-d, reaching INR 47,200/t ex-works, driven by decent demand and consistent buying activity.

Overview of Alang market

As of 28 January, the ship-breaking melting scrap market in Alang, Gujarat, reported no price changes for the fourth day in a row. According to BigMint, HMS (80:20) stood at INR 33,500/t ($387/t) ex-yard. Suppliers decided to keep their offers steady, supported by moderate trading activity in semi-finished and finished steel and decent scrap demand.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $350-355/t, which equates to approximately INR 32,924/t (including freight). Local HMS (80:20) prices in Mumbai remained steady at INR 31,800/t DAP. Indicative prices of shredded from Europe stood at $370-$375/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 14,600/t.

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