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

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

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained unchanged d-o-d at INR 37,400/t DAP on 20 December 2024. The Mandi steel market experienced a slow but steady day, as demand remained subdued. However, most mills expect a rebound in the near term as the market recovers from low prices and witnesses improved demand.

A mill owner informed BigMint, "The higher cost of imported scrap has prompted mills to prioritise domestically sourced material, a dependency that is likely to increase in the near future. However, the steel market's slow pace and liquidity constraints have led to delayed payments to local scrap suppliers, adding strain to the supply chain."

Raw materials scenario

Sponge iron (CDRI) prices in Mandi remained stable d-o-d at INR 30,800/t DAP. Similarly, pig iron (steel-grade) prices in Ludhiana remained unchanged d-o-d at INR 35,800/t DAP.

Steel market overview

Steel ingot prices in Mandi held steady d-o-d at INR 42,600/t DAP during the market reporting and normalisation period. In contrast, semi-finished steel tags recorded a d-o-d dip of INR 100-200/t across major markets.

Rebar (Fe 500) prices in Mandi Gobindgarh climbed up by INR 200/t to INR 47,200/t exw today. The finished steel market continued to see steady activity amid moderate buying interest, mirroring the trends observed yesterday.

Overview of Alang market

On 20 December, ship-breaking melting scrap prices in Alang, Gujarat, held steady d-o-d. BigMint's assessment placed HMS (80:20) at INR 34,500/t ex-yard. During the previous trading session, semi-finished and finished steel prices remained stable in the region. This, along with moderate scrap demand from Bhavnagar-based IF steel mills, encouraged suppliers to maintain steady pricing.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,200-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365/t-$366/t, which equates to approximately INR 33,311/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,800/t DAP. 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 14,400/t.

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