India: BigMint's ferrous scrap index rises by INR 200/t in steady market

• Sponge iron prices increase by INR 100/t
  
  
• Semis ,finished prices improve by INR 200/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, sharply improved by INR 200/t to INR 36,700/tonne (t) DAP on 23 January 2025. The overall Mandi steel market remained stable, with semi-finished and finished steel prices rising by INR 200/t d-o-d, driven by moderate buying activity. Mills are optimistic that ingot prices will stay range-bound at INR 41,700/t to INR 42,500/t in the near term, reflecting a cautiously steady market outlook.

Raw material price updates

Sponge iron (CDRI) prices in the Mandi market rose by INR 100/t to INR 30,100/t DAP. Meanwhile, steel-grade pig iron prices in Ludhiana remained unchanged d-o-d at INR 34,800/t DAP, reflecting market stability in the region.

Steel market overview

Steel ingot prices in Mandi Gobindgarh witnessed an upward movement of INR 200/t, reaching INR 42,100/t DAP during the reporting period. Similarly, semi-finished steel prices in key markets registered a d-o-d increase of INR 100/t-300/t.

Rebar (Fe 500) prices in Mandi Gobindgarh also rose by INR 200/t to INR 46,500/t ex-works, driven by moderate market demand, indicating a steady buying trend.

Overview of other markets

BigMint reported a rise of INR 300/t in ship-breaking melting scrap prices in Gujarat's Alang market on 23 January. HMS (80:20) was priced at INR 33,500/t ex-yard. Increased demand for scrap and moderate activity in semi-finished and finished steel trading prompted suppliers to increase their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $352-356/t, which equates to approximately INR 32,967/t (including freight). Local HMS (80:20) in Mumbai remained stable d-o-d at INR 31,700/t DAP. Indicative prices of shredded from Europe stood at $374-$376/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 14,500/t.

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