India: BigMint's scrap index up INR 100/t; market remains steady

• Sponge iron prices dip INR 100/t
  
  
• Finished steel prices rise by INR 200/t
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose marginally by INR 100/tonne (t) d-o-d to INR 36,700/t DAP on 6 December 2024. Compared to the last three days, today's market experienced a pause as buyers remained muted during the first half of the trading session. However, some buying activity resumed after ingot prices dipped INR 200/t, indicating a cautious but responsive market sentiment.

A mill owner said, "For the time being transportation issues may arise or disturbances may be observed as scrap vehicles are arriving late due to the ongoing farmer protests and increased checks at the Mandi-Delhi-Haryana borders".

Raw materials scenario

Sponge iron (CDRI) prices in Mandi decreased by INR 100/t d-o-d to INR 30,600/t DAP today. Meanwhile, pig iron (steel-grade) in Ludhiana remained stable at INR 37,000/t DAP.

Steel market overview

Steel ingot prices in Mandi decreased by INR 100/t d-o-d to INR 41,900/t DAP. Semi-finished steel prices showed a mixed trend today. While some regions experienced an upward movement in prices, others saw a decline, reflecting varied market dynamics across regions.

The Mandi market recorded a d-o-d increase of INR 200/t in rebar (Fe 500) prices, reaching at INR 46,700/t (ex-works). The rise was supported by average trade inquiries, though activity remained slower compared to the last trading session.

Overview of Alang market

According to BigMint, melting scrap prices at Alang's ship-breaking yards in Gujarat remained unchanged on 6 December. HMS (80:20) was priced at INR 34,800/t ex-yard. While semi-finished steel prices increased in the region, Bhavnagar mills opted for cheaper domestic scrap, prompting suppliers in Alang to hold prices steady.

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 $355-360/t, which equates to approximately INR 32,686/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 $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 14,000/t.

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