India: BigMint's scrap index falls INR 300/t d-o-d on subdued steel demand
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- Semi-finished steel prices drop INR 300/t
- Sponge iron prices dip INR 200/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 35,600/t DAP on 30 October 2024. The scrap market has remained weak in recent days, with mills sourcing scrap only as per requirement and offering lower prices due to slow demand for semi-finished and finished steel. Additionally, due to Diwali festival trade activities have remained muted in the finished steel market.
Raw materials overview
Sponge iron (CDRI) prices in the Mandi market slid INR 200/t to INR 32,000/t DAP. Meanwhile, in Ludhiana, pig iron (steel grade) saw a notable decline, with prices falling sharply by INR 200/t to INR 38,300/t DAP.
Steel market overview
In the Mandi market, steel ingots dipped INR 300/t to INR 41,600/t during the price reporting and normalisation phase. On the other hand, prices in other key markets decreased by INR 100/t to INR 300/t. The most significant decline was observed in the Ludhiana and Ghaziabad market where semi-finished steel prices dropped by INR 300/t today.
Rebar (Fe 500) prices in Mandi decreased by INR 200/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 at INR 42,500/t, INR 47,000/t, and INR 31,800/t, respectively. Slower trading activities were seen while the mills informed that scrap supply remained average.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was INR 6,000-6,100/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-370/t, which equates to approximately INR 33,300/t (including freight). Local scrap HMS (80:20) prices in Mumbai fell by INR 100/t d-o-d to INR 32,200/t DAP.
Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,050/t.
To see BigMint's melting scrap assessment, pricing methodology, and specification documents, Click here
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