India: BigMint's scrap index slips by INR 200/t d-o-d amid cautious market sentiments

• Raw material tags dip by INR 100-200/t
  
  
• Semi-finished prices drop by INR 200/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, slide by INR 200/tonne (t) d-o-d to INR 36,700/t DAP on 15 January 2025. The market was range-bound today, with prices aligning with expectations from major mills. Demand for steel remained subdued compared to the last two days, reflecting ongoing cautious sentiment in the industry.

Raw material price updates

In Mandi, sponge iron (CDRI) prices saw a decline of INR 100/t d-o-d to INR 30,300/t DAP. Similarly, in Ludhiana, steel-grade pig iron prices dropped by INR 200/t d-o-d to INR 35,200/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh decreased by INR 200/t d-o-d to INR 42,000/t DAP during the reporting and normalisation period. In other major markets, semi-finished steel prices fell by INR 100-200/t d-o-d.

Today, rebar (Fe 500) prices in Mandi Gobindgarh remained stable d-o-d at INR 46,700/t exw.

Overview of other markets

In the western India-based Jalna market, billet, rebar, and HMS (80:20) prices remained unchanged d-o-d at INR 41,200/t, INR 46,300/t, and INR 31,800/t, respectively. Demand for finished steel continued to be at moderate levels, with mills incorporating 20-30% sponge in their charge mix.

On 15 January 2025, HMS (80:20) scrap prices in Alang, Gujarat, remained unchanged d-o-d at INR 33,000/t ex-yard, according to BigMint. The closure of the market for Makar Sankranti and moderate trading activity seen previously prompted suppliers to maintain the current offers.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,300-5,600/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $350-355/t, which equates to approximately INR 32,875/t (including freight). Local HMS (80:20) in Mumbai remained stable d-o-d at INR 32,000/t DAP. Indicative prices of shredded from Europe stood at $373-$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 14,550/t.

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