- Tight supply, higher steel demand lifts scrap index w-o-w
- Increased sponge iron usage limits scrap price uptrend
BigMint’s domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, rose by INR 200/tonne (t) d-o-d to INR 37,900/t DAP on 24 July. W-o-w, scrap prices increased by INR 270-400/t, supported by a mild supply shortage and improved demand across semi-finished and finished steel segments.
A mill owner informed BigMint, “Imported scrap remains largely absent from the market due to uncompetitive pricing and persistent geopolitical tensions. Increased sponge-iron intake in Mandi has partly offset the shortfall from imports and helped cushion a mild domestic scrap shortage, though reliance on alternative feedstock may exert upward pressure on secondary steel raw-material costs if current conditions persist.”
A local mill owner informed BigMint, “Near‑term outlook offers little confidence that the price increases local mills anticipated will be sustained. Market dynamics remain driven by price viability and competitive pricing pressure from Durgapur.”
Raw-material, steel market trends
Sponge iron prices in Mandi remained stable d-o-d at INR 29,300/t DAP, while w-o-w, prices increased by INR 265/t amid decent demand. Pig iron prices in Ludhiana decreased by INR 100/t to INR 41,200/t DAP and were down INR 280/t w-o-w.
In the steel segment, ingot prices in Mandi gained INR 200/t d-o-d to INR 42,300/t while prices were up INR 170/t w-o-w. Rebar ex‑works prices inched up INR 100/t to INR 46,900/t, with an improvement of INR 200/t w-o-w.
Overview of Alang market
Ship-breaking melting scrap prices in Alang, Gujarat, fell by INR 500/t d-o-d on 24 July, with HMS (80:20) assessed at INR 33,500/t ex-yard. The decline reflected weak buying interest from steelmakers and recyclers, along with limited trading activity, as most participants stayed cautious and waited for a clearer demand recovery. Over the past few weeks, prices have largely stayed within the INR 33,500-34,000/t range, indicating a market that continues to lack strong directional momentum.
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 4,200-4,600/t.
Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were assessed at $338/t, approximately INR 34,900/t (inclusive of freight). Today, HMS (80:20) prices in Mumbai inched up by INR 50/t to INR 31,550/t DAP. Indicative prices of shredded from Europe stood at $394/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 13,500/t.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact – support@bigmint.co
Leave a Reply