India: BigMint's scrap index drops INR 100/t d-o-d on weak steel demand
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- Sponge iron prices decrease by INR 200/t d-o-d
- Semis, finished steel tags fall INR 100-200/t d-o-d
BigMint's domestic end-cutting scrap index for the Mandi Gobindgarh market fell by INR 100/t d-o-d to INR 36,300/t DAP on 20 November 2024.
Steel demand in Mandi remains subdued. Mills are procuring scrap cautiously, limiting purchases to immediate needs while offering lower prices.
Raw materials scenario
Today, prices of sponge iron (CDRI) in Mandi fell by INR 200/t d-o-d to INR 31,000/t DAP. Meanwhile, pig iron (steel-grade) in Ludhiana remained stable d-o-d at INR 37,800/t DAP today.
Steel market overview
Today, steel ingot prices in Mandi dipped by INR 100/t d-o-d to INR 41,900/t DAP during the price reporting and normalisation phase. Prices of semi-finished steel across markets decreased by INR 100-200/t d-o-d.
Rebar (Fe 500) prices in Mandi remained stable d-o-d at INR 46,500/t exw amid moderate trades.
Overview of other markets
India's ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 20 November 2024. According to BigMint's assessment, HMS (80:20) prices were at INR 34,500/t ($409/t) ex-yard. The region witnessed moderate trade activity in semi-finished and finished steel during the previous trading session. Additionally, steady scrap purchases by Bhavnagar-based mills encouraged suppliers to maintain their current offers.
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 $364-366/t, which equates to approximately INR 33,000/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable d-o-d at INR 32,500/t DAP. In India, indicative prices of shredded from Europe stood at $385-$390/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 13,850/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here
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