India: BigMint's scrap index slips by INR 400/t amid lacklustre steel demand-13 Nov

• Raw material prices drop by INR 150-200/t
  
  
• Semis, finished sales slow, prices dip d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 400/t to INR 37,100/t DAP on 13 November 2024. Scrap procurement by mills remained weak today due to sales pressure in both semi-finished and finished steels across major markets. Additionally, scrap suppliers lowered their offers in response to the slow market conditions.

Raw materials scenario

Today, sponge iron (CDRI) prices in Mandi dipped by INR 200/t to INR 31,800/t DAP. Meanwhile, pig iron (steel-grade) prices in Ludhiana fell by INR 150/t to INR 39,250/t DAP.

Raw material charge mix

• Mandi Gobindgarh

  Scrap usage: 80%-85%

  Sponge iron usage: 15%-20%
  
  

• Ludhiana

  Busheling scrap: 90%-95% (for special steel grades)

  
  
  

Steel market overview

Steel ingot prices in Mandi decreased by INR 300/t to INR 42,700/t DAP during today's price reporting and normalisation. Semi-finished steel prices across markets similarly fell by INR 200/t to INR 700/t compared to the previous day. The Ahmedabad semi-finished steel market significantly dipped by INR 700/t d-o-d.

Today's rebar (Fe 500) prices in Mandi dropped by INR 100/t to INR 47,500/t ex-works, amid sluggish trading activity over the last couple of days.

Ship-breaking scrap market trends

On 13 November, ship-breaking melting scrap prices in Gujarat's Alang dropped by INR 600/t d-o-d. BigMint's assessment shows HMS (80:20) at INR 34,700/t ($411/t) ex-yard. The market saw subdued trading in semi-finished and finished steel, with demand remaining weak. Limited scrap trading activity pushed suppliers to lower their offers in response to softened market conditions.

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 $370-385/t, which equates to approximately INR 34,696/t (including freight). Local scrap HMS (80:20) in Mumbai decreased by INR 100/t to INR 33,400/t DAP. In India, indicative prices of shredded from Europe stood at $395-$400/t CFR Nhava Sheva.

India's imported scrap market showed mixed trends today, with alloy and special steel manufacturers showing interest in premium-grade scrap, while buyers stayed cautious amid slow domestic steel sales.

Offers

Australian offers were at $385-390/t CFR Chennai for shredded and $360-365/t CFR for HMS (80:20), with west coast offers at $395/t for shredded and $370-375/t for HMS (80:20).

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,400/t.

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