India: BigMint's ferrous scrap index holds steady d-o-d for 2nd consecutive day
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- Sponge iron prices remain stable
- Finished steel tags rise INR 200/t
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, held steady d-o-d at INR 37,400/tonne (t) DAP on 31 January 2025 for the second consecutive day.
A mill owner stated, "The first half of the trading session saw good demand for semi-finished and finished steel, driving active market participation. However, in the second half, as prices of the same increased, buyers exercised caution, leading to subdued trading activity."
A scrap trader noted, "Some major steel manufacturers in the region are refraining from active scrap procurement due to sluggish market conditions and significant credit gaps. Additionally, production cuts have also been observed in the area."
Raw material price updates
Sponge iron (CDRI) prices in Mandi showed no change from the previous day, staying at INR 30,300/t DAP, whereas steel-grade pig iron rates in Ludhiana increased by INR 300/t d-o-d to INR 36,000/t DAP.
Steel market overview
Steel ingot prices in Mandi Gobindgarh were unchanged d-o-d at INR 42,800/t DAP, while semi-finished steel tags in key markets recorded an increase of INR 100-200/t.
Prices of rebar (Fe 500) in the region rose INR 200/t d-o-d to INR 47,400/t exw, but buying interest weakened following the price increase.
Overview of other markets
On 31 January 2025, ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged d-o-d. BigMint's assessment placed HMS (80:20) prices at INR 33,700/t ex-yard. There was average deal activity in semi-finished and finished steel and stable scrap demand, so suppliers opted to hold prices steady.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,400-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $354-356/t, which equates to approximately INR 33,030/t (including freight). Local HMS (80:20) prices in Mumbai remained stable d-o-d at INR 32,000/t DAP. Indicative prices of shredded from Europe stood at $372-$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 14,200/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
