India: BigMint's scrap index holds steady amid stable market conditions

• Sponge iron prices remain unchanged d-o-d
  
  
• Finished steel prices see a minor drop
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market remained steady at INR 36,900/t DAP on 17 December 2024.

The steel scrap market is witnessing moderate trade activity, with mills opting to procure scrap strictly based on their immediate production requirements. Despite steady domestic demand, imported scrap buying has been largely put on hold by the major mills reflecting a cautious approach to managing inventory and costs.

Demand for semi-finished and finished steel products remains more or less average. Steelmakers in Mandi anticipate minimal price fluctuations in the near term, as market conditions remain steady. The price of ingots has stayed within the range of INR 41,600/t to INR 42,500/t, reflecting a rangebound trend in the market.

Raw materials scenario

Prices of sponge iron (CDRI) in Mandi continue to stay stable at INR 30,700/t DAP, with no changes recorded in pig iron (steel-grade) prices in Ludhiana, which stood at INR 35,800/t DAP.

Steel market overview

Steel ingot prices in Mandi remained firm at INR 42,200/t DAP during the market reporting and normalisation phase. Semi-finished steel prices dipped INR 50/t to INR 600/t d-o-d.

Rebar (Fe 500) prices in Mandi Gobindgarh dropped INR 100/t to INR 46,700/t exw today. The price dip led to moderate trade inquiries in the market.

Overview of Alang market

Prices for ship-breaking melting scrap in Alang, Gujarat, remained stable on 17 Dec, with HMS (80:20) priced at INR 34,500/t ex-yard, as per BigMint's data. Despite rising semi-finished and finished steel prices yesterday, average trade activity across markets ensured no changes in supplier pricing.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360/t-365/t, which equates to approximately INR 33,194/t (including freight). Local HMS (80:20) in Mumbai fell by INR 300/t to 32,500/t DAP. Indicative prices of shredded from Europe stood at $380-385/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 14,150/t.

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