India: BigMint's ferrous scrap index continues to fall amid limited trade activities
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On 12 March, 2024, BigMint's report indicated a drop in the index for domestic steel scrap (end-cutting) in Mandi Gobindgarh by INR 200/t, settling at INR 37,500/t on a delivered-at-plant (DAP) basis. The steel market in the region saw subdued buying activity, with mills procuring scrap at levels based on immediate need.
The pricing for steel ingots in Mandi fell by INR 300/t in contrast to the previous day, settling at INR 42,800/t during reporting and price normalisation period. Meanwhile, prices in various notable markets exhibited a downturn ranging between INR 100/t and INR 300/t today. Rebar (Fe500) prices dipped by INR 100/t to INR 47,500/t exw.
"Today, the market witnessed a notable slowdown compared to yesterday's session, marked by a conspicuous absence of buyers throughout both halves of the trading session. Consequently, steel prices experienced a decline. However, the overall market trend suggests a range-bound pattern for the week," a mill owner informed BigMint.
Raw materials price update
In Mandi, the cost of sponge iron (CDRI) dropped by INR 100/t to INR 30,900/t today, while pig iron (steel grade) prices in Ludhiana held steady at INR 39,000/t on DAP basis.
Overview of other markets
Durgapur: The overall trading activities remained dull this week as minimal movement was observed in the spot market. Buyers opted for wait-and-watch mode and resorted to need-based buying amid the festive market environment. Today in Durgapur, billet prices declined by INR 200/t to INR 39,100/t DAP, while rebar (Fe500) prices experienced a decrease of INR 300/t to INR 43,100/t exw.
Gujarat's Alang market witnessed a decline of INR 300/t in ship-breaking melting scrap prices on 12 March, 2024, according to BigMint. HMS (80:20) was valued at INR 33,600/t ex-yard. Prices for semi-finished and finished steel saw a decrease in all major Indian markets during yesterday's trading. Scrap suppliers adjusted their offers downward today due to subdued buying inquiries.
Imported scrap market
Indian buyers continued to exhibit reluctance in purchasing imported scrap from the seaborne market, primarily due to the availability of cost-effective material in the domestic market and the expectation of further price declines. Shredded scrap indicators from the US and Europe were assessed at $395-$405/t CFR.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,000-5,500/t.
Domestic vs imported scrap: The imported melting scrap prices at Nhava Sheva Port stood at approximately $373/t-$378/t, equivalent to around INR 33,495/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai remained constant, settling at INR 33,500/t d-o-d.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,450/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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