India: BigMint's scrap index up INR 400/t on positive market sentiments - 11 Nov
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- Scrap prices continue to rise
- Prices of semis, finished steel improve
BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, climbed INR 400/t d-o-d to INR 37,400/t ($443/t) DAP on 11 November 2024. Today, the Mandi scrap market experienced decent trading activity, with the major mills actively procuring scrap in substantial volumes as demand surged, prompting suppliers to maintain higher offer levels.
Raw materials scenario
In the Mandi market, sponge iron (CDRI) prices remained stable at INR 32,000/t DAP. Conversely, in Ludhiana, pig iron (steel-grade) prices were steady at INR 39,600/t DAP.
Steel market overview
Steel ingot prices rose by INR 300/t to INR 43,000/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other major markets edged up by INR 250/t to INR 300/t d-o-d.
Rebar (Fe 500) prices in Mandi jumped INR 100/t d-o-d to INR 47,600/t exw.
Overview of other markets
Ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 500/t d-o-d on 11 Nov'24, as per BigMint's assessment. HMS (80:20) stood at INR 35,500/t ($421/t) exy. Active trade activities were observed for semi-finished and finished steel in the region during the previous trading session. Additionally, buying inquiries for scrap improved, which prompted suppliers to lift their offers today.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,500-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $370-375/t, which equates to approximately INR 33,800/t (including freight). Local scrap HMS (80:20) in Mumbai increased by INR 500/t to INR 33,500/t DAP. In India, indicative prices of shredded from Europe stood at $395-$400/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 13,050/t.
To see BigMint's melting scrap assessment, pricing methodology, and specification documents, click here
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