India: BigMint's scrap index falls INR 300/t on muted steel demand - 15 Oct'24

BigMint's domestic end-cutting scrap index, which tracks the Mandi Gobindgarh market, fell by INR 300/tonne (t) to INR 38,500/t DAP on 15 October 2024.

A mill owner reported that a significant slowdown in demand was witnessed in today's trading session in the Mandi steel market. Both the morning and afternoon sessions saw limited buyer activity, which led to a drop in prices across various steel segments. This along with ongoing GST checks at the borders are also affecting the trade activities in Mandi.

Raw materials overview

Sponge iron (CDRI) prices in the Mandi market rose by INR 200/t to INR 33,900/t DAP. Meanwhile, in Ludhiana, pig iron (steel grade) saw a notable decline, with prices falling sharply by INR 300/t to INR 40,000/t DAP.

Steel market overview

In the Mandi region, steel ingots dipped by INR 200/t to INR 44,200/t during the price reporting and normalisation phase. On the other hand, prices in other key markets decreased by INR 100/t to INR 450/t. The most significant decline was observed in the Rourkela market, where semi-finished steel prices dropped by INR 450/t today

In Mandi, rebar (Fe500) prices remained firm at INR 49,000/t ex-works, with market activity experiencing slightly reduced inquiries.

Overview of Alang market

Ship-breaking melting scrap prices in Gujarat's Alang market inched up by INR 300/t d-o-d on 15 Oct'24, as per BigMint's assessment. HMS (80:20) prices were assessed at INR 34,500/t ($410/t) exy. Semi-finished steel prices increased by INR 400-500/t in the region during yesterday's trading session. This, along with decent buying inquiries for scrap from Bhavnagar-based mills, prompted suppliers to raise their offers today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $376-$378/t, which equates to approximately INR 33,800/t (including freight). Meanwhile, local scrap HMS (80:20) prices in Mumbai remained stable at INR 33,900/t DAP. In India, indicative prices of shredded scrap from Europe stood at $395-$400/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 13,400/t.

To see BigMint's melting scrap assessment, pricing methodology, and specification documents, Click here

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - support@bigmint.co.