India: BigMint's scrap index surges by INR 600/t as semis prices improve

• Steel ingot prices rise INR 300/t d-o-d
  
  
• Finished steel market remains muted
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, increased by INR 600/tonne (t) d-o-d to INR 37,500/t DAP on 30 December 2024.

The Mandi market improved notably today, with semi-finished and steel scrap tags rising by INR 300-600/t d-o-d. However, the finished steel segment continued to experience moderate demand, with prices edging up by only INR 100/t today d-o-d. While the increase in raw material prices hints at positive momentum, the finished steel market was subdued, reflecting average buying activity.

Raw material price updates

The raw material market saw an uptrend today. In Mandi, sponge iron (CDRI) prices rose by INR 100/t d-o-d to INR 31,000/t DAP. Similarly, pig iron (steel-grade) in Ludhiana recorded an increase of INR 150/t d-o-d to INR 36,600/t DAP.

Steel market overview

Steel ingot prices in Mandi Gobindgarh climbed up by INR 300/t d-o-d to INR 42,900/t (DAP) during the reporting and normalisation period. In other major markets, semi-finished steel prices observed a d-o-d increase of INR 100-500/t, reflecting a positive trend in the sector.

Rebar (Fe 500) prices in Mandi Gobindgarh rose by INR 100/t d-o-d to INR 47,200/t exw. The finished steel market experienced an average day, with moderate trade, but mills remain optimistic about a potential uptick in rebar demand in the near future.

Overview of other markets

In the Jalna market, located in western India, billet prices increased by INR 100/t d-o-d to INR 41,800/t. Meanwhile, rebar and HMS (80:20) prices remained stable d-o-d at INR 47,200/t and INR 32,300/t, respectively. According to sources, trade activity in finished steel remained moderate during today's trading session, with some mills supplying billets to Gujarat from Jalna. Additionally, scrap supply in the market is currently considered to be adequate.

India's ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged for the fourth day in a row as of 30 December 2024. As per BigMint's assessment, HMS (80:20) was priced at INR 34,500/t ex-yard. Stability in semi-finished and finished steel prices, coupled with moderate trade activity, led suppliers to keep their offers stable.

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 $360-366/t, which equates to approximately INR 33,392/t (including freight). Local HMS (80:20) in Mumbai fell by INR 200/t d-o-d to INR 32,500/t DAP. Indicative prices of shredded from Europe stood at $385-388/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 14,750/t.

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