India: BigMint's scrap index continues to fall for third day in a row-15 Nov

• Raw material prices drop INR 300/t d-o-d
  
  
• Semis, finished steel prices dip INR 200/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped INR 200/t to INR 36,700/t DAP on 15 November 2024.

Domestic steel scrap prices have declined by around INR 800/t over the past three days, driven by sluggish demand and reduced buying activity, which put pressure on sellers to adjust their prices downward.

Additionally, trading remained subdued in the latter half of today's session due to the Gurpurab festival, leading to a quieter market.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi fell by INR 300/t to INR 31,500/t DAP today. However, pig iron (steel-grade) prices in Ludhiana saw a decline of INR 300/t to INR 38,600/t DAP.

Raw material charge mix

Mandi Gobindgarh

Scrap usage: 80%-85%

Sponge iron usage: 15%-20%

Ludhiana

Busheling scrap: 90%-95% (for special steel grades)

Steel market overview

Steel ingot prices in Mandi fell by INR 200/t to INR 42,300/t DAP during today's price reporting and normalisation. Semi-finished steel prices across markets similarly fell by INR 200/t to INR 400/t compared to the previous day

Rebar (Fe 500) prices in Mandi decreased by INR 200/t d-o-d to INR 47,000/t ex-works. This drop is attributed to sluggish trading activity in recent days, indicating softer market demand.

Ship-breaking scrap market trends

On 15 Nov'24, scrap prices in Gujarat's Alang ship-breaking market saw a d-o-d decline of INR 200/t, according to BigMint's assessment. The HMS (80:20) grade was assessed at INR 34,300/t ($406/t) ex-yard. The previous trading session witnessed a drop of INR 100-200/t in semi-finished and finished steel prices, which, coupled with moderate trading activity in the scrap segment, led suppliers to adjust their offers downward today.

Mumbai steel market

Mumbai's IF route Rebar (Fe 500) prices remained stable at INR 47,800/t exw. Trading activity in the finished steel market was subdued as buyers adopted a wait-and-watch approach ahead of the general elections in Maharashtra scheduled for 20 November. Scrap (HMS 80:20) prices are at INR 32,900/t DAP, while the conversion spread between scrap and billet is approximately INR 9,400/t.

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 $365-370/t, which equates to approximately INR 33,440/t (including freight). Local scrap HMS (80:20) in Mumbai decreased by INR 100/t to INR 32,900/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 13,500/t.

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