India: BigMint's ferrous scrap index surges by INR 100/t amid stable market trends-18 Oct

• Raw material offers drop INR 200/t

  
  
  

• Finished steel prices remain stable today
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, marginally rose by INR 100/t d-o-d to INR 38,400/t DAP on 18 October 2024. Trading remained range-bound in the Mandi steel market, with moderate demand observed in the semi-finished and finished segments. Meanwhile, sponge iron prices decreased due to sluggish trading, while scrap offers experienced a slight uptick today.

A scrap supplier informed BigMint, "Ludhiana mills are currently refraining from purchasing scrap at competitive levels due to sufficient inventories of imported material. As a result, traders are reducing their offers, particularly for CR busheling."

Raw materials scenario

Prices of sponge iron (CDRI) in the Mandi market dipped by INR 200/t d-o-d to INR 33,500/t DAP today. Conversely, prices for pig iron (steel-grade) in Ludhiana fell by INR 200/t d-o-d to INR 39,800/t DAP.

Steel market overview

Steel ingot prices in Mandi edged up by INR 100/t to INR 44,200/t DAP during the price reporting and normalisation phase. Prices in other major markets held steady today, with only slight fluctuations in semi-finished steel prices.

Today, rebar (Fe 500) prices in the Mandi market remained stable at INR 48,800/t exw amid average demand.

Overview of other markets

On 18 October 2024, ship-breaking melting scrap prices in Alang, Gujarat, showed stability for the third straight day. BigMint's analysis indicated that HMS (80:20) was at INR 34,500/t ex-yard. Average trade was reported for semi-finished and finished steel the day before. Additionally, moderate demand from IF steel mills in Bhavnagar encouraged suppliers to keep their offers unchanged.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,800/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $375-$380/t, which equates to approximately INR 34,146/t (including freight). Local scrap HMS (80:20) in Mumbai fell by INR 100/t d-o-d to INR 33,600/t DAP. In India, indicative prices of shredded from Europe stood at $400-$405/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 13,450/t.

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