India: BigMint's ferrous scrap index rises INR 300/t d-o-d

• Raw material prices rise by INR 100-300/t d-o-d
  
  
• Semi-finished steel prices up INR 300/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 300/t to INR 35,600/t DAP on 4 November 2024.The steel market appeared to be stable in terms of demand, although transportation issues related to the ongoing festival season impacted scrap arrivals. Scrap traders tried to milk this opportunity and raise their offers even as mills have raised prices of semi-finished steel.

A mill owner informed BigMint: "In the near term, the market is expected to remain range-bound due to the Chhath Puja festival. However, activity may trend up by mid-week, and if the primary mills raise their offer prices for finished steel, the secondary market will likely see an upward trend".

Bulk Arrivals: Two bulk shipments of steel scrap recently arrived at Kandla Port in Gujarat and Haldia Port in West Bengal, both sourced from the USA, according to latest information.

Raw materials scenario

Today, sponge iron (CDRI) prices in Mandi edged up by INR 100/t to INR 31,600/t DAP, while pig iron (steel-grade) prices in Ludhiana increased by INR 300/t to INR 38,600/t DAP.

Steel market overview

Steel ingot prices in Mandi rose by INR 300/t to INR 41,900/t DAP during today's price reporting and normalisation. Semi-finished steel prices across markets similarly rose by INR 200/t to INR 400/t compared to the previous day.

Today, rebar (Fe 500) prices in Mandi remained steady at INR 46,300/t ex-works, with trade activity showing a slight improvement compared to yesterday.

Overview of other markets

Mumbai's IF route Rebar (Fe 500) prices increased marginally d-o-d by INR 100 at INR 47,200/t exw. Decent trading activities were observed in the finished steel market as buyers turned active after the Diwali festival. Current scrap prices are at INR 32,000/t DAP. Conversion spread between scrap and billet stands at around INR 9,500/t.

In Alang, Gujarat, ship-breaking melting scrap prices held steady for the third consecutive day on 5 November, 2024. BigMint reported HMS (80:20) prices at INR 33,500/t ex-yard. The region saw average trading in semi-finished and finished steel yesterday, with moderate buying interest from Bhavnagar IF mills keeping supplier's offers unchanged.

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 remained stable at 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 13,200/t.

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