India: BigMint's scrap index jumps by INR 500/t d-o-d amid improved steel demand

• Finished steel buying rises on optimism regarding Budget
  
  
• Mandi's sponge iron prices up; steel ingot, rebar tags surge too

  
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed up by INR 500/tonne (t) d-o-d to INR 37,200/t DAP on 27 January 2025. In today's trading session, the Mandi steel market experienced a positive shift, as buyers actively engaged in purchases. This led to an uptrend in both the semi-finished and finished steel segments. Additionally, mills were observed procuring scrap in moderate volumes.

A mill owner informed, "Buyers made active bookings in the finished steel segment amid positive expectations for the Union Budget. Additionally, steel mills in the western region, particularly Mumbai and Jalna, reported robust demand over the past three days. This trend is viewed as a positive signal for other regional steel markets, with mills expressing optimism regarding the implementation of safeguard duties."

Raw material price updates

In Mandi, sponge iron (CDRI) prices rose by INR 200/t d-o-d to INR 30,400/t DAP, while Ludhiana recorded an INR 300/t hike in steel-grade pig iron prices to INR 35,300/t DAP, signalling an uptrend in the market.

Steel market overview

Steel ingot prices in Mandi Gobindgarh increased by INR 500/t d-o-d to INR 42,600/t DAP, while semi-finished steel tags in leading markets rose by INR 100-900/t d-o-d.

Prices of rebars (Fe 500) in Mandi Gobindgarh went up by INR 300/t d-o-d to INR 47,000/t exw, reflecting strong demand and sustained buying interest.

Jalna market sees improved trade momentum

Billet prices in the western India-based Jalna market increased by INR 500/t d-o-d to INR 41,800/t, while rebar prices rose by INR 300/t d-o-d to INR 46,800/t. Meanwhile, HMS (80:20) scrap prices remained stable d-o-d at INR 31,400/t. Trade activity strengthened, particularly for rebars and billets, in today's trading session. Sources suggest that the upcoming Union Budget announcement has fuelled optimism among buyers regarding finished steel demand, driving robust trading activity.

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 $352-356/t, which equates to approximately INR 32,934/t (including freight). Local HMS (80:20) in Mumbai moved up by INR 100/t d-o-d to INR 31,800/t DAP. Indicative prices of shredded from Europe stood at $370-$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 14,500/t.

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