India: BigMint's scrap index falls INR 100/t d-o-d on subdued steel demand
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- Weak demand for semis, finished steel continues
- Pig iron, DRI prices remain stable d-o-d
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped INR 100/t d-o-d to INR 36,800/t DAP on 5 February 2025. Overall, market sentiments remained range-bound, with minor fluctuations observed in semi-finished and finished steel prices. Trade activity was subdued, impacted by liquidity constraints in the steel sector.
Raw materials scenario
Sponge iron (CDRI) prices in Mandi remained stable at INR 30,200/t DAP today. Meanwhile, pig iron (steel-grade) prices in Ludhiana remained steady d-o-d at INR 35,600/t DAP.
Steel market overview
Steel ingot prices in Mandi dipped INR 100/t to INR 42,300/t DAP during market reporting and normalisation. Semi-finished steel prices across markets decreased by INR 50-500/t.
Rebar (Fe 500) prices in Mandi dropped INR 200/t to INR 46,900/t ex-works, with limited trade inquiries observed.
Overview of other markets
Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 200/t d-o-d on 5 Feb'25. According to BigMint's assessment, HMS (80:20) prices stand at INR 33,000/t ($379/t) ex-yard. Limited demand for semi-finished and finished steel was observed in the region during yesterday's trading session. Additionally, average trade activity in scrap prompted suppliers to reduce their offers today.
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 $352-355/t, which equates to approximately INR 33,000/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 $373/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 14,100/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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