India: BigMint's scrap index remains stable d-o-d as steel market remains muted
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- Sponge iron prices remain unchanged d-o-d
- Rebar prices dip INR 200/t
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained steady at INR 36,400/t DAP on 19 November 2024.
In the scrap market today, bid-offer disparities persisted. While prices for some grades remained stable, others saw minor increases. Major mills continued procuring scrap based on immediate requirements, with no significant bulk volume deals reported in Mandi.
The steel market remains under pressure amid sluggish working conditions, with demand for semi-finished and finished steel products persisting at below-average levels.
A mill owner informed: "The market remains under pressure due to weak demand for steel. However, ingot prices are already at the bottom, holding steady around INR 42,000/t, and are expected to remain range-bound. If demand improves, prices could see an increase of INR 300-600/t from current levels."
Raw materials scenario
Sponge iron (CDRI) prices in Mandi remained constant at INR 31,200/t (DAP) today. Meanwhile, pig iron (steel-grade) prices in Ludhiana decreased by INR 400/t to INR 37,800/t (DAP).
Steel market overview
Steel ingot prices in Mandi remained stable at INR 42,000/t DAP during today's market reporting and normalization. Semi-finished steel prices across markets saw a decline of INR 100-500/t.
Rebar (Fe 500) prices in Mandi dropped by INR 200/t to INR 46,500/t ex-works, with limited trade inquiries observed.
About Jalna steel market
In the Jalna steel market, HMS 80:20 prices declined by INR 200/t to INR 32,900/t. Meanwhile, billet prices dipped by INR 100/t to INR 41,500/t, while rebar prices remained steady at INR 46,100/t today.
Rebar trade activity has slowed due to liquidity challenges arising from the local assembly elections on 20 November 2024. Additionally, strict GST compliance checks have disrupted the scrap supply chain to mills, adding to market pressures.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,600-5,900/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365-367/t, which equates to approximately INR 33,182/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable at INR 32,500/t DAP. In India, indicative prices of shredded from Europe stood at $385-$390/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 14,000/t.
To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.
