India: BigMint's ferrous scrap index remains stable d-o-d amid moderate market sentiments

• Raw material prices remain stable
  
  
• Semis, finished steel prices decline
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable at INR 38,900/tonne (t) DAP on 7 October 2024 amid a neutral market atmosphere. There was moderate availability of steel scrap in the region, as mills are sourcing domestic scrap and sponge iron for their steel production processes. Additionally, prices of alternative raw materials were range-bound today.

Mandi's market sentiments

Overall, market movements remained stable today, with the first half of the trading session marked by slow activity. Steel manufacturers reduced their prices, but in the second half, buyers' interest surged, as spot demand increased in response to the lower offers.

A mill owner informed BigMint, "In the near term, the market is projected to see prices of around INR 44,000-44,500/t for Mandi ingots. Last week, Mandi and other steel markets experienced improvements amid rising raw material prices and hikes in finished steel offers from primary mills. This trend is likely to lead to a more positive outlook in the coming days, as demand is expected to be average or above."

Raw materials overview

In the Mandi market, sponge iron (CDRI) prices remained stable at INR 33,300/t DAP. Conversely, in Ludhiana, pig iron (steel-grade) prices were steady at INR 40,350/t DAP.

Steel market overview

In the Mandi region, steel ingot prices marginally decreased by INR 100/t to INR 44,200/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other key markets decreased by INR 50-200/t.

Rebar (Fe 500) prices in Mandi fell INR 200/t to INR 48,800/t exw. The rebar market experienced slower demand compared to yesterday's trading session.

Overview of Alang's market

On 7 October 2024, the Alang market in Gujarat saw an increase of INR 200/t d-o-d in ship-breaking melting scrap prices, according to BigMint. HMS (80:20) was priced at INR 35,300/t ex-yard. The region witnessed a rise in trade activities for semi-finished and finished steel in the previous trading session. Additionally, a solid flow of buying inquiries for scrap led suppliers to increase their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $380-$385/t, which equates to approximately INR 34,534/t (including freight). Local scrap HMS (80:20) prices in Mumbai increased by INR 300/t to INR 34,000/t DAP. In India, indicative prices of shredded scrap from Europe stood at $400-$405/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 13,050/t.

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