India: BigMint's ferrous scrap index remains stable d-o-d despite weak steel demand

• Sponge iron prices hold steady d-o-d
  
  
• Semis, finished steel see limited trades
  
  

BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market held firm d-o-d at INR 36,600/t ($433/t) DAP on 22 November 2024. Moderate inquiries were observed in the scrap segment, as mills prioritised sourcing domestic material. Meanwhile, the semi-finished and finished steel markets experienced a slowdown in trade activity during today's session.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi remained flat d-o-d at INR 31,500/t (DAP) today. Meanwhile, pig iron (steel-grade) prices in Ludhiana inched down by INR 100/t to INR 37,700/t (DAP).

Steel market overview

Steel ingot prices in Mandi remained stable d-o-d at INR 42,200/t DAP during today's market reporting and normalisation. Meanwhile, prices in other key markets increased by INR 50-300/t d-o-d.

Rebar (Fe 500) prices in Mandi remained firm d-o-d at INR 46,700/t exw. The rebar market experienced slower demand compared to yesterday's trading session.

Overall, the semi-finished and finished steel segments witnessed limited trades d-o-d.

Alang market trends up d-o-d

Ship-breaking melting scrap prices in Gujarat's Alang market rose INR 200/t d-o-d on 22 November 2024, as per BigMint's assessment. HMS (80:20) stood at INR 34,700/t ($411/t) exy. Semi-finished steel prices increased by INR 300-400/t in the region during yesterday's trading session. This uptrend, along with decent buying inquiries for scrap from Bhavnagar-based mills, prompted suppliers to raise their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap-to-billet spread was at INR 5,600-5,900/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $363-365/t, which equates to approximately INR 33,000/t (including freight). Local HMS (80:20) in Mumbai remained stable d-o-d at INR 32,500/t DAP. In India, indicative prices of shredded from Europe stood at $383-$386/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 14,050/t.

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

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