India: BigMint's ferrous scrap index continues to decline for second consecutive day
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- Scrap prices see a price drop
- Bulk scrap arrives in India
BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh steel market decreased by INR 200/tonne (t) to INR 41,500/t DAP on 19 April. Mills remained committed to securing scrap at discounted rates from suppliers, and while there was increased activity in today's scrap market compared to recent days, significant volume deals were still absent due to the fluctuating market trend.
Prices of other substitute raw materials such as sponge iron (CDRI) decreased by INR 200/t to INR 35,000/t. Meanwhile, pig iron (steel grade) prices in Ludhiana remained unchanged at INR 42,400/t.
A source informed: "The recent price drop sparked renewed activity in scrap movement, fuelled by mills' anticipation of a market rise in the near term. Over the last few days, scrap suppliers faced pressure due to limited interest from mills and a decline in semi-finished prices amid weak buying activity."
Steel market
Steel ingot prices in the region dropped by INR 200/t to INR 47,200/t, during the price reporting and normalisation phase. On the other hand, prices in other major markets witnessed a decline, ranging from INR 100-INR 400/t today.
Today, rebar prices experienced a decrease of INR 200/t, settling at INR 51,800/t, following a price drop, spot trading activity was observed in the market.
Imported scrap market
Indian buyers are actively pursuing imported scrap due to heightened downstream demand and a scarcity of scrap within the local market. Recent indicative pricing for shredded scrap originating from the US and Europe ranged between $422-$430/t CFR, while HMS (80:20) from Europe and West Africa hovered around $395-$400/t CFR.
According to a source within the trading sphere, "The scarcity of scrap in the market has made buyers cautious, leading to multiple bookings for India, with a keen eye on the shortage within the supplier's domestic market."
Another major trading house added, "Market sentiment is positive, fuelled by increased demand resulting from the shortage of scrap in the domestic market. In the short term, we anticipate a potential uptick of $5-$10/t in imported scrap offers."
Bulk scrap bookings
It is noteworthy that, Indian steel mills have secured bookings of approximately six bulk scrap vessels in April 2024. The vessels, originating in the US west coast, are expected to reach most probably in Kandla, Chennai, and Vizag, between May and June. The deals were heard at $400-$405/t for shredded and $395-$400/t for HMS (80:20). Bulk scrap offers have increased by $5-$10/t.
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