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

• Sponge iron prices drop 500/t
  
  
• Semis, finished steel prices dip INR 100-200/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable at INR 35,600/t DAP on 4 November 2024. Steel scrap procurement remained moderate in the Mandi market, with mills continuing to acquire scrap despite slow demand in both the semi-finished and finished steel segments.

However, logistical issues are worsening as labour shortages for loading and unloading persist, with many transporters struggling with workforce availability during the festival season.

Raw materials scenario

Today, sponge iron (CDRI) prices in Mandi experienced a substantial decrease of INR 500/t to INR 31,500/t DAP, while pig iron (steel-grade) prices in Ludhiana stayed stable at INR 38,300/t DAP.

Steel market overview

Today, steel ingot prices in Mandi dipped INR 100/t to INR 41,600/t DAP during the price reporting and normalisation phase. Prices of semi-finished steel across markets decreased by INR 50/t d-o-d to INR 400/t. The Raigarh steel market witnessed a notable decline in semi-finished steel prices, which dropped INR 400/t today.

Today, Rebar (Fe 500) prices in Mandi slipped INR 200/t to INR 46,300/t exw, with trade activity showing signs of slowing down.

Overview of Alang market

On 4 November, ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d. BigMint's assessment placed HMS (80:20) at INR 33,500/t ex-yard. Due to the ongoing festivities, market activity has been subdued. However, the last trading session saw a moderate uptick in demand, prompting increased buying inquiries for scrap. As a result, suppliers opted to keep their offer prices steady today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,900-6,100/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,741/t (including freight). Local scrap HMS (80:20) in Mumbai fell by INR 200/t to INR 32,000/t DAP. In India, indicative prices of shredded from Europe stood at $390-$395/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 13,100/t.

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