India: BigMint's scrap index slides by INR 200/t d-o-d amid sluggish steel demand - 11 Dec

• Market faces liquidity pressure amid weak finished sales
  
  
• Leading automaker's CR busheling auction sees price drop
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dipped by INR 200/tonne (t) d-o-d to INR 36,300/t DAP on 11 December 2024. Scrap procurement by steel mills slowed today, with prices declining steadily over the past three days. Steelmakers are buying scrap at moderate levels, and the market is under liquidity pressure due to weak sales of finished steel.

Over the past few months, re-rolling mills have been repeatedly receiving notices from the Pollution Control Board for failing to meet standards. Some mills are using coal for steel rolling instead of gas, as the latter is more expensive. In response, standalone re-rolling furnaces have announced a five-day strike in the region.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi decreased by INR 100/t d-o-d to INR 30,300/t DAP today. Meanwhile, pig iron (steel-grade) prices in Ludhiana remained steady d-o-d at INR 36,500/t DAP.

Steel market overview

Steel ingot prices in Mandi remained stable at INR 41,600/t DAP during the market reporting and normalisation phase. Semi-finished steel tags dropped by INR 100-400/t d-o-d across various markets.

Rebar (Fe 500) prices in the Mandi market dropped by INR 200/t d-o-d INR 46,200/t exw.

Overview of Alang market

On 11 December 2024, ship-breaking melting scrap prices in Gujarat's Alang market dropped by INR 200/t d-o-d. BigMint's assessment placed HMS (80:20) at INR 34,000/t ex-yard. Semi-finished steel prices in the region fell by INR 300-400/t d-o-d during yesterday's trading session, leading suppliers to reduce their offers due to moderate scrap trade activity.

Leading automaker's CR busheling auction sees price drop

A prominent 4-wheeler manufacturer in North India held an auction on 10 December 2024, for around 2,200 t of CR busheling prompt scrap (low manganese) from its Gurgaon facility. The material was sold at INR 37,500-37,600/t exw, marking a price drop of INR 1,000-1,100/t compared to the previous auction.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $358-361/t, which equates to approximately INR 32,700/t (including freight). Local HMS (80:20) in Mumbai fell by INR 200/t to INR 32,300/t DAP. In India, indicative prices of shredded from Europe stood at $375-$380/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 14,250/t.

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