India: BigMint's scrap index remains steady d-o-d despite muted steel demand

• Mandi steel market sees need-based buying
  
  
• Finished steel prices fall by INR 100/t d-o-d

  
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, remained firm d-o-d at INR 36,500/tonne (t) DAP on 21 January 2025. The Mandi steel market witnessed minimal inquiries, and trading remained subdued during both sessions. Only essential or need-based purchases were observed in the major market.

Raw material price updates

Sponge iron (CDRI) prices in the Mandi market remained unchanged d-o-d at INR 30,200/t DAP, while steel-grade pig iron tags in Ludhiana were also stable d-o-d at INR 35,000/t DAP.

Steel market overview

In Mandi Gobindgarh, steel ingot prices remained stable d-o-d at INR 41,900/t DAP during the reporting period. Meanwhile, semi-finished steel prices in other major markets experienced a d-o-d decrease of INR 100-300/t.

Rebar (Fe 500) prices in Mandi Gobindgarh saw a marginal dip of INR 100/t d-o-d to INR 46,400/t exw amid weak demand.

Overview of other markets

Durgapur: Durgapur's semi-finished and finished longs markets witnessed negative sentiments this week, as prices in the northern belt remained on the lower side. Spot trades were moderate, as buyers stayed away from bulk bookings. Billet prices in Durgapur saw a slight decline of INR 50/t d-o-d to INR 39,050/t. Meanwhile, rebars (Fe 500) held steady d-o-d at INR 41,700/t exw, and scrap remained unchanged d-o-d at INR 33,000/t DAP.

Hyderabad: Hyderabad's billet prices were unchanged d-o-d at INR 39,500/t, while rebars (Fe 500) remained firm at INR 43,500/t exw. Scrap was also stable d-o-d at INR 30,200/t DAP. There was low availability of scrap, but demand was also weak. This kept prices stable in the region. Sporadic deals for billets have been heard over the last 19 days, but these have been concluded at lower levels.

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 $340-345/t, which equates to approximately INR 32,076/t (including freight). Local HMS (80:20) in Mumbai fell by INR 100/t d-o-d to INR 31,900/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.