India: BigMint's scrap index slips INR 300/t amid weak steel demand-10 Dec

• Alternate raw materials witness a price drop
  
  
• Semis, finished steel prices dip INR 100-200/t d-o-d
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market dropped by INR 300/t to INR 36,500/tonne (t) DAP on 10 December 2024.

Steel mills are facing sales pressure in both the semi-finished and finished steel segments. Additionally, scrap procurement has slowed down today due to subdued buying activity. In response, scrap suppliers have reduced their offer prices, reflecting the current market challenges. As anticipated by the major mills, ingot prices in the Mandi market are expected to remain range-bound between INR 41,400 to INR 42,000/t DAP.

Raw materials scenario

Sponge iron (CDRI) prices in Mandi decreased by INR 100/t to INR 30,400/t (DAP) today. Meanwhile, pig iron (steel-grade) prices in Ludhiana fell by INR 200/t to INR 36,500/t (DAP).

Steel market overview

Steel ingot prices in Mandi dipped by INR 200/t d-o-d to INR 41,700/t DAP during market reporting and normalisation. Semi-finished steel prices across markets decreased by INR 100-300/t.

The Mandi market witnessed a d-o-d decline of INR 100/t in rebar (Fe 500) prices, bringing them down to INR 46,400/t (ex-works).

Overview of Alang market

On 10 Dec 2024, ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged d-o-d. As per BigMint's assessment, HMS (80:20) was priced at INR 34,200/t ex-yard. The region witnessed average trade activity in semi-finished and finished steel. Moreover, moderate scrap demand from Bhavnagar-based induction furnace steel mills prompted suppliers to maintain stable pricing.

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 $360/t-$365/t, which equates to approximately INR 33,178/t (including freight). Local scrap HMS (80:20) in Mumbai remained stable d-o-d at INR 32,500/t DAP. In India, indicative prices of shredded from Europe stood at $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 14,050/t.

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