India: BigMint's ferrous scrap index rises INR 300/t on uptick in steel prices

• Mills actively procure scrap as demand surges
  
  
• Steel ingots rise INR 300/t, rebar up INR 200/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed up by INR 300/tonne (t) ($4/t) d-o-d to INR 36,600/t ($433/t) DAP on 21 November 2024. Today, the Mandi scrap market experienced decent trading activity, with the major mills actively procuring scrap in substantial volumes as demand surged, prompting suppliers to maintain higher offer levels.

Raw materials scenario

Today, sponge iron (CDRI) prices in Mandi rose by INR 500/t d-o-d to INR 31,500/t DAP. Conversely, in Ludhiana, pig iron (steel-grade) tags were steady d-o-d at INR 37,800/t DAP.

Steel prices rise

Steel ingot prices in Mandi edged up by INR 300/t d-o-d to INR 42,200/t DAP during today's price reporting and normalisation phase. Similarly, semi-finished steel tags across markets rose INR 200-550/t compared to the previous day. The Raipur semi-finished steel market saw a notable increase of INR 550/t today.

Today, rebar (Fe 500) offers in Mandi jumped by INR 200/t d-o-d to INR 46,700/t exw. Trade activity also showed an uptick compared to yesterday.

Alang market holds firm d-o-d

India's ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 21 November. According to BigMint's assessment, HMS (80:20) prices were at INR 34,500/t ($409/t) ex-yard. Prices of semi-finished and finished steel held steady during yesterday's trading session. This, along with moderate trade activity in scrap, prompted suppliers to keep offers firm.

Price highlights

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

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $364-366/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 $384-$387/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 14,200/t.

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

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