India: BigMint's scrap index dips by INR 100/t amid range-bound steel prices

• Sponge iron prices inch up by INR 100/t
  
  
• Rebar prices dip by INR 100/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, declined slightly by INR 100/tonne (t) d-o-d to INR 37,200/t DAP on 3 February, 2025.

"In yesterday's trading session, the steel market in Mandi experienced a slight decline, as the Union Budget failed to provide any significant relief for the sector. Steel mills had been anticipating tax concessions, reductions in electricity costs, and industrial subsidies, but these expectations were not met. As a result, the market remained range-bound, with ingot prices expected to stay within INR 42,200-43,000/t in the near term," said steel manufacturers.

Raw material price updates

Sponge iron (CDRI) prices in Mandi were slightly up by INR 100/t to INR 30,400/t DAP, whereas steel-grade pig iron rates in Ludhiana decreased by INR 200/t d-o-d to INR 35,800/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh were unchanged d-o-d at INR 42,600/t DAP, while semi-finished steel tags in key markets recorded a decrease of INR 100-400/t.

Rebar (Fe 500) prices in the region declined by INR 100/t d-o-d to INR 47,200/t ex-works, but market demand remained sluggish.

Overview of other markets

On 3 February, ship-breaking melting scrap rates in Alang, Gujarat, declined by INR 300/t d-o-d. According to BigMint, HMS (80:20) is now at INR 33,400/t ex-yard. Reduced trading in semi-finished and finished steel, along with lacklustre scrap demand, softened market sentiments, compelling suppliers to lower their offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,400-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $355-360/t, which equates to approximately INR 33,030/t (including freight). Local HMS (80:20) prices in Mumbai remained stable d-o-d at INR 32,000/t DAP. Indicative prices of shredded from Europe stood at $374-$376/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.