India: BigMint's melting scrap index slides for 2nd consecutive day amid weak steel demand - 10 Oct

• Sponge iron prices stable for past 2 days
  
  
• Semis, finished steel drop by INR 100/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, edged down by INR 200/tonne (t) d-o-d to INR 38,500/t DAP on 10 October 2024.

Weak demand in the semi-finished and finished steel markets in the past few days has put pressure on mills. The impact has been felt by scrap suppliers, who have been forced to reduce offers. Additionally, issues with GST inspections are causing further headaches for traders, disrupting the arrival of scrap from neighbouring states.

Raw materials overview

In the Mandi market, sponge iron (CDRI) prices remained steady d-o-d at INR 33,500/t DAP. Prices have been stable in the past couple of days, as a decent intake of sponge iron for steelmaking has been seen in the region. Conversely, in Ludhiana, pig iron (steel-grade) prices were down slightly by INR 50/t d-o-d to INR 40,250/t DAP.

Steel market overview

In the Mandi region, steel ingot prices fell by INR 100/t d-o-d to INR 44,100/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other major markets declined by INR 200 to 500/t d-o-d, with the steepest drop of around INR 500/t occurring in the semi-finished steel markets of Raipur, Mumbai, and Ahmedabad.

Rebar (Fe 500) prices in Mandi decreased by INR 100/t d-o-d to INR 48,800/t exw amid sluggish trading activity.

Overview of the Alang scrap market

On 10 October 2024, the Alang market in Gujarat saw a decline in ship-breaking scrap prices by INR 500/t d-o-d, with HMS (80:20) assessed at INR 34,500/t ex-yard, according to BigMint. Semi-finished steel prices also decreased by around INR 400/t d-o-d amid weak demand, resulting in suppliers reducing their offers today due to average scrap trading activity.

Price highlights

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

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $380-$385/t, which equates to approximately INR 34,528/t (including freight). Local scrap HMS (80:20) prices in Mumbai fell by INR 300/t d-o-d to INR 33,700/t DAP. In India, indicative prices of shredded scrap 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 12,900/t.

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