- Sponge iron prices slip by INR 100/t d-o-d
- Semis, finished steel prices remain steady
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, held steady d-o-d at INR 36,800/tonne (t) DAP on 11 February 2025 for the second consecutive day.
Steel prices in Mandi remained largely stable over the last week across the semi-finished, finished, and scrap categories, with no significant fluctuations in the primary markets. Presently, steel manufacturers expect ingot tags to remain within INR 42,000-42,800/t, as they are already near the bottom of the price range.
Additionally, slow demand for finished steel has caused liquidity pressure in the main market, with scrap suppliers also struggling with delayed payments from mills.
Raw material price updates
Prices of sponge iron (CDRI) in Mandi dropped by INR 100/t d-o-d to INR 30,500/t DAP, while tags of steel-grade pig iron in Ludhiana remained unchanged at INR 36,000/t DAP.
Steel market overview
Steel ingot prices in Mandi Gobindgarh remained steady d-o-d at INR 42,600/t DAP, while semi-finished tags in major markets saw a decline of INR 50-350/t d-o-d.
Rebar (Fe 500) prices in the region held steady d-o-d at INR 47,200/t exw, although demand softened after a price hike the previous day.
Overview of other markets
On 11 February 2025, ship-breaking melting scrap prices in Alang, Gujarat, remained flat d-o-d. HMS (80:20) was priced at INR 33,200/t ex-yard, based on BigMint’s assessment. Despite a rise in semi-finished steel prices, trading activity in the scrap market remained stable, with steady demand allowing scrap suppliers to keep prices consistent.
Price highlights
End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread stood at INR 5,500-5,700/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $350-355/t, which equates to approximately INR 32,988/t (including freight). Local HMS (80:20) prices in Mumbai up by INR 100/t to INR 32,400/t DAP. Indicative prices of shredded from Europe stood at $370-$375/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 14,500/t.
To check BigMint’s melting scrap assessment, pricing methodology, and specification documents, click here.
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