India: BigMint's scrap index falls INR 300/t d-o-d on subdued steel demand

• Trades limited as buyers expect further price drops
  
  
• Semi-finished steel prices decline INR 300/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, edged down by INR 300/tonne (t) d-o-d to INR 36,200/t DAP on 25 November 2024. The Mandi steel market was subdued, amid reduced demand from neighbouring states for finished products and ongoing liquidity challenges. Scrap procurement by mills was limited, as buyers lay low, in expectation of further price drops given the sluggish semi-finished and finished steel markets.

Raw materials overview

Sponge iron (CDRI) prices in the Mandi market slid INR 100/t d-o-d to INR 31,200/t DAP. Meanwhile, in Ludhiana, pig iron (steel grade) saw a notable decline of INR 300/t d-o-d to INR 37,450/t DAP.

Steel market overview

In Mandi, steel ingot tags dipped INR 300/t d-o-d to INR 41,800/t during the price reporting and normalisation phase. On the other hand, prices in other key markets decreased by INR 200-600/t d-o-d today, with the most significant decline observed in the Raigarh market.

Rebar (Fe 500) prices in Mandi decreased by INR 100/t d-o-d to INR 46,500/t exw amid sluggish trading activity.

Overview of other markets

In south India's Chennai market, billet, rebar, and HMS 80:20 prices remained stable d-o-d at INR 41,800/t, INR 46,300/t, and INR 32,200/t, respectively. Slower trading activities were seen, with mills observing that scrap supply remained average.

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 $362-365/t, which equates to approximately INR 33,000/t (including freight). Local scrap HMS (80:20) in Mumbai increased by INR 400/t to INR 32,900/t DAP. In India, indicative prices of shredded from Europe stood at $383-$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

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