India: BigMint's scrap index drops INR 100/t on weak steel demand-26 Nov

• Sponge iron prices dip INR 200/t
  
  
• Semis, finished steel prices down INR 100/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market dipped INR 100/t to INR 36,100/t DAP on 26 November 2024.

Subdued demand in semi-finished and finished steel has pushed scrap suppliers to cut offers, with prices dropping by INR 300/t w-o-w. Mill owners anticipate ingot prices to stay within the INR 41,500/t-42,000/t range in the near term, reflecting cautious market sentiment.

A mill owner informed, "Amid market pressure and liquidity constraints, large steel mills are operating at 80-90% capacity, whereas the medium-sized mills have reduced production to 10-12 hours daily".

Raw materials scenario

Sponge iron (CDRI) prices in Mandi fell by INR 200/t to INR 31,000/t (DAP) today. Meanwhile, pig iron (steel-grade) prices in Ludhiana remained stable at INR 37,450/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 decreased by INR 100/t to INR 41,700/t DAP during market reporting and normalization. Semi-finished steel prices across markets declined by INR 100-400/t.

Rebar (Fe 500) prices in Mandi dropped INR 100/t to INR 46,400/t ex-works, with limited trade inquiries observed.

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 $360-365/t, which equates to approximately INR 32,969/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable at INR 32,900/t DAP. In India, indicative prices of shredded from Europe stood at $380-$385/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.