India: BigMint's scrap index falls INR 600/t in last 2 days on weak steel demand - 26 Dec

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dropped by INR 600/tonne (t) in the last two days to INR 36,600/t DAP on 26 December 2024. Compared to the last 8-10 days, this market drop is due to plant owners, especially patra mills, showing less interest in buying scrap, as their plants are running at only 50% capacity. As a result, the demand for scrap has also decreased.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi decreased by INR 100/t d-o-d to INR 30,700/t DAP today. Meanwhile, pig iron (steel-grade) in Ludhiana improved by INR 500/t to INR 36,000/t DAP.

Steel market overview

Steel ingot prices in Mandi decreased by INR 150/t day-on-day (d-o-d), settling at INR 42,200/t DAP during the market reporting and normalisation period. Despite this small decline, the market remains almost muted, with limited trading activity and low demand from the domestic market

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-369/t, which equates to approximately INR 33,400/t (including freight). Local scrap HMS (80:20) in Mumbai remained at INR 32,700/t DAP. In India, indicative prices of shredded from Europe stood at $388-390/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 14,450/t.

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