- Sponge iron prices remain stable d-o-d
- Semis, steel prices decline by INR 200-300/t
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, decreased by INR 200/tonne (t) d-o-d to INR 37,300/t DAP on 8 January 2025. Scrap prices in the region declined by INR 500-700/t over the past four days.
Scrap prices in Mandi Gobindgarh continued to decline on a sluggish and largely inactive steel market and muted buying interest. Mills are procuring scrap strictly based on immediate production needs.
The imported scrap segment in Mandi remains subdued for a prolonged period, as buyers prefer domestic scrap due to its cost advantage. Imported scrap prices currently trade at a premium of INR 300-500/t compared to domestic offers, reinforcing the preference for local material in the steel manufacturing sector.
Raw material
Sponge iron (CDRI) prices in Mandi Gobindgarh remained stable d-o-d at INR 29,500/t DAP, while steel-grade pig iron prices in Ludhiana declined by INR 400/t d-o-d to INR 38,000/t DAP.
Steel market
Semi-finished steel (ingot) prices in Mandi Gobindgarh declined by INR 200/t d-o-d, settling at INR 42,500/t DAP. Other major production hubs also witnessed price drops in the range of INR 100-600/t during today’s trading session.
Rebar (Fe500) prices in Mandi Gobindgarh declined by INR 300/t to INR 47,000/t ex-works despite ongoing input cost pressures. Over the past four days prices have dropped by INR 800/t in the region.
Meanwhile, HR strip (patra) prices softened by INR 300/t to INR 43,500/t ex-works. Over the last four days patra prices have fallen by INR 900/t, reflecting sustained weak demand.
Overview of Mumbai market
Rebar (Fe 500) prices on the Mumbai IF route decreased by INR 600/t to INR 48,200/t ex-works. Trading activity remained dull, as buyers have already procured sufficient material and are now waiting for the further clarity. On the raw material front, billet prices decreased by INR 500/t to INR 42,500/t. HMS (80:20) scrap was assessed at INR 31,700/t DAP, while the scrap-billet conversion spread stood at around INR 10,800/t.
Upcoming scrap auctions
Price highlights
End-cutting to billet spread: In Mandi, the spread between end-cutting scrap and billets stood in the range of INR 5,000-5,200/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $325-$326/t, approximately INR 31,617/t (inclusive of freight). HMS (80:20) in Mumbai remained steady d-o-d at INR 31,700/t DAP. Indicative prices of shredded from Europe stood at $355/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 15,800/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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