India: BigMint's scrap index down by INR 200/t amid modest inquiries-28 Oct

• GST inspections ease, finished demand weak
  
  
• Scrap prices fall for four consecutive days
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 200/tonne (t) d-o-d to INR 36,200/t DAP on 28 October 2024. In the Mandi market, due to slow demand, major steel mills are procuring scrap as per need. Additionally, the market has witnessed a drop in scrap prices for four consecutive days.

A mill owner informed BigMint: "The Mandi market is now slightly free from GST inspections. However, weak demand for finished steel is pressuring mills to reduce prices, while they are also offering significant discounts to liquidate their finished inventory."

Raw materials scenario

Today, prices of sponge iron (CDRI) in Mandi remained stable at INR 32,500/t DAP. Meanwhile, pig iron (steel-grade) in Ludhiana fell by INR 500/t to INR 38,500/t DAP today.

Steel market overview

Today, steel ingot prices in Mandi dipped by INR 100/t to INR 42,200/t DAP during the price reporting and normalisation phase. Prices of semi-finished steel across markets decreased by INR 100/t d-o-d to INR 400/t.

Rebar (Fe 500) prices in Mandi slipped by INR 300/t to INR 46,900/t exw today amid limited trade. In the finished steel market Durgapur, Delhi and Bangalore market witnessed a significant drop of INR 400/t d-o-d.

Overview of other markets

On 28 October, 2024, the prices for ship-breaking melting scrap in Alang, Gujarat, remained stable compared to the previous day. BigMint's assessment indicates that HMS (80:20) prices are at INR 33,200/t ex-yard. There was a moderate volume of transactions for semi-finished and finished steel in the region during the last trading session. Additionally, significant scrap purchases from mills in Bhavnagar prompted suppliers to keep prices stable today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 6,000-6,100/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,725/t (including freight). Local scrap HMS (80:20) in Mumbai fell by INR 200/t to INR 32,300/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 13,100/t.

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