India: BigMint's ferrous scrap index remains steady d-o-d amid mixed trends - 1 Oct

• Sponge iron prices increase by INR 300/t d-o-d
  
  
• Finished steel offers improve by INR 300/t today
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable at INR 38,200/t DAP. Today, while the market experienced moderate activity in scrap buying, a slowdown in the semi-finished steel market was noticed compared to the previous trading session. Prices of alternative raw materials (sponge iron) and finished steel (rebars) increased, but offers in the semi-finished and scrap markets remained stable.

"The market is experiencing a shortage of scrap, as suppliers from neighbouring states have halted deliveries to Mandi recently due to GST checks at the borders. Near-term ingot prices in Mandi are expected to be at INR 43,200-43,800/t," a mill owner informed BigMint.

Raw materials overview

Prices of sponge iron (CDRI) in Mandi rose INR 300/t to INR 32,000/t DAP. In Ludhiana, pig iron (steel-grade) witnessed an increase of INR 100/t to INR 40,100/t DAP.

Steel prices rise in most locations

In the Mandi region, steel ingot prices remained steady at INR 43,600/t during the price reporting and normalisation phase. Meanwhile, prices in other key markets increased by INR 100-400/t. Today, steel markets in Mumbai and Ghaziabad witnessed a significant rise in prices, with semi-finished steel increasing by INR 400/t.

Rebar (Fe 500) prices in Mandi rose INR 300/t to INR 48,600/t amid moderate trading activity.

Prices in Jalna climb up

In the Jalna market in western India, billet prices saw a sharp rise of INR 700/t to INR 43,700/t, while rebar prices increased by INR 600/t to INR 48,800/t. HMS 80:20 scrap prices also inched up by INR 100/t to INR 33,300/t. According to industry sources, finished steel demand has picked up over the past two weeks, with many mills having already secured rebar orders until the middle of the month. The inflow of domestic scrap remains steady, and several mills have secured substantial quantities of imported scrap, which have already begun arriving.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-$380/t, which equates to approximately INR 34,058/t (including freight). Local scrap HMS (80:20) prices in Mumbai increased by INR 200/t to INR 33,200/t DAP. In India, indicative prices of shredded scrap from Europe stood at $395-$400/t CFR Nhava Sheva.

In India, inquiries for imported scrap saw a gradual increase, but buyers remained cautious about committing to larger volumes due to slower-than-expected domestic steel sales. However, market participants are optimistic, expecting demand to pick up ahead of the festive season.

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,000/t.

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