India: BigMint's scrap index remains stable d-o-d amid muted steel demand
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- Raw material prices remain stable d-o-d
- Semi-finished, finished see dull trade
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained stable d-o-d at INR 36,700/t DAP on 10 January, 2025.
A mill owner informed, 'The steel market continues to witness subdued trade activity in both the semi-finished and finished steel segments, pushing sellers to lower prices amid weak buyer participation. In Mandi Gobindgarh, scrap procurement by mills remains moderate, with steelmakers utilising approximately 85% scrap and 15% sponge iron in their production process. Market sentiment suggests that ingot prices in Mandi are likely to remain range-bound this week.
Raw material price updates
In Mandi, sponge iron (CDRI) prices dropped by INR 200/t d-on-d, at INR 30,300/t DAP. Similarly, pig iron (steel-grade) in Ludhiana also dropped by INR 200/t, at INR 35,800/t DAP.
Steel market overview
Steel ingot prices in Mandi Gobindgarh remain stable at INR 42,000/t DAP during the reporting and normalization period.
Rebar (Fe 500) prices in Mandi Gobindgarh remain stable at INR 46,600/t exw amid muted buying trend today.
Overview of other markets
Ship-breaking melting scrap prices in Gujarat's Alang market dropped by INR 300/t d-o-d on 10 Jan'25. According to BigMint's assessment, HMS (80:20) stood at INR 33,200/t ($387/t) exy. During yesterday's trading session, prices of semi-finished and finished steel dropped by approximately INR 200-600/t in the region, driven by weak demand. Subdued scrap trade levels led suppliers to reduce their offers today.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,000-5,500/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $360-365/t, which equates to approximately INR 33,500/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,100/t DAP. Indicative prices of shredded from Europe stood at $380-$385/t CFR Nhava Sheva.
