India: BigMint's scrap index inches up by INR 100/t d-o-d
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- Raw material prices remain unchanged
- Finished steel prices drop by INR 100/t
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose by INR 100/tonne (t) d-o-d to INR 36,800/t DAP on 16 January 2025. Pressure persists in the Mandi steel market, with medium-scale mills operating at reduced production hours of 10-12 per day. The charge mix for steelmaking currently comprises 85% scrap and 15% sponge. In the near term, the market is expected to remain stable, with Mandi ingot prices holding steady within the range of INR 41,800-42,500/t.
Raw material price updates
In Mandi, sponge iron (CDRI) prices steady d-o-d at INR 30,300/t DAP. Similarly, in Ludhiana, steel-grade pig iron prices remained stable at 35,200/t DAP.
Steel market overview
Steel ingot prices in Mandi Gobindgarh held steady at INR 42,000/t DAP during the reporting and normalization period. Meanwhile, semi-finished steel prices in other major markets recorded a modest rise of INR 100/t, with prices in several key regions remaining unchanged d-o-d.
Today, rebar (Fe 500) prices in Mandi Gobindgarh fell by INR 100/t to INR 46,600/t exw.
Overview of other markets
On 16 January 2025, the prices of ship-breaking melting scrap in Alang, Gujarat, remained unchanged from the previous day. BigMint assessed HMS (80:20) at INR 33,000/t ex-yard. Stable semi-finished and finished steel prices, along with moderate scrap trading activity, prompted suppliers to hold steady on their offers.
Major auction result
On 14 Jan'25, a leading North Indian 4-wheeler manufacturer auctioned 5,300 t of CR busheling prompt scrap (low manganese) at its Gurgaon facility, fetching INR 36,700-36,900/t exw. Prices dropped by INR 600-700/t compared to the 10 Dec'24 auction, where 2,200 t sold at INR 37,500-37,600/t exw.
Another auction, an auto components manufacturer unit in Manesar, Haryana, auctioned 1,500 t of CR busheling scrap at INR 35,300-35,500/t exw.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $350-355/t, which equates to approximately INR 32,937/t (including freight). Local HMS (80:20) in Mumbai remained stable d-o-d at INR 32,000/t DAP. 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 14,550/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
