India: BigMint's scrap index gains INR 100/t d-o-d amid stable market sentiments

• Sponge iron tags remain stable d-o-d
  
  
• Semis prices rise by INR 100/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, edged up by INR 100/tonne (t) d-o-d to INR 36,500/t DAP on 20 January 2025. The market remained largely stable, and scrap prices increased by a slight INR 100/t d-o-d amid a marginal uptick in semi-finished steel tags, to the tune of INR 100/t d-o-d.

Additionally, steel prices in Mandi Gobindgarh moved in a narrow range, with minimal fluctuations observed in raw material, semi-finished, and finished steel tags. In the near term, steelmakers expect ingot prices to hover within a range of INR 41,600-42,400/t.

Raw material price updates

The Mandi market witnessed stable prices d-o-d for sponge iron (CDRI), which remained at INR 30,200/t DAP. In contrast, Ludhiana's steel-grade pig iron prices dropped slightly by INR 100/t d-o-d to INR 35,000/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh increased by INR 100/t d-o-d to INR 41,900/t DAP during the reporting and normalisation period. However, semi-finished steel prices in other major markets saw a slight uptick of INR 100-400/t d-o-d today.

Additionally, rebar (Fe 500) prices in Mandi Gobindgarh held firm d-o-d at INR 46,600/t exw.

Overview of Alang market

According to BigMint's latest assessment, ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged d-o-d on 20 January 2025. HMS (80:20) was priced at INR 33,200/t ex-yard. Moderate trade activity for scrap, along with stable semi-finished and finished steel prices in the region, encouraged suppliers to keep their offers consistent.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,400-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $345-350/t, which equates to approximately INR 32,487/t (including freight). Local HMS (80:20) in Mumbai remained stable d-o-d at INR 32,000/t DAP. Prices have been stable since 14 January 2025. Indicative prices of shredded from Europe stood at $373-$375/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 14,650/t.

To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.