India: BigMint's scrap index rises INR 100/t d-o-d in range-bound market

• Need-based buying, liquidity crunch weighs on scrap
  
  
• Sponge iron prices up INR 100/t, semis rise INR 200/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose INR 100/tonne (t) d-o-d to INR 37,300/t DAP on 23 December 2024 amid a range-bound market.

As per sources, "The Mandi Gobindgarh steel market experienced moderate activity today, starting slower compared to Saturday's session. Mills are procuring scrap on an as-needed basis, while standalone rolling mills continue operating with 12-hour production shifts. Liquidity challenges persist in the market. In the near term, ingot prices in the region are expected to remain range-bound at INR 42,300-42,700/t."

Raw materials scenario

In Mandi, sponge iron (CDRI) prices moved up slightly by INR 100/t d-o-d to INR 30,900/t DAP. On the other hand, pig iron (steel-grade) in Ludhiana dropped by INR 50/t d-o-d to INR 35,600/t DAP.

Steel market overview

Steel ingot prices in Mandi were up marginally by INR 200/t d-o-d to INR 42,500/t DAP during the market reporting and normalisation period. Meanwhile, in other major markets, semi-finished steel tags recorded a d-o-d increase of INR 100-400/t.

Rebar (Fe 500) prices in Mandi Gobindgarh remained firm d-o-d at INR 47,200/t exw today. In today's trading session, the finished steel market experienced subdued demand, with buyers remaining cautious amid ongoing market uncertainties.

Overview of Alang market

On 23 December 2024, India's ship-breaking melting scrap prices in Alang, Gujarat, held steady compared to the previous day. BigMint's assessment placed HMS (80:20) at INR 34,300/t ex-yard. Semi-finished and finished steel prices in the region also remained stable during the last trading session. Moderate trade activity for scrap encouraged suppliers to keep their offers unchanged.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,200-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $365/t-$366/t, which equates to approximately INR 33,357/t (including freight). Local HMS (80:20) in Mumbai remained stable at INR 32,800/t DAP. 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 14,500/t.

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