India: BigMint's ferrous scrap index continues to fall for third consecutive day
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The index for domestic steel scrap (end-cutting) in Mandi Gobindgarh, according to BigMint, saw a decrease of INR 300/t on 6 February, 2024, settling at INR 36,900/t on a delivered-at-plant (DAP) basis. Mills in Mandi are procuring domestic scrap at subdued levels today, reflecting the sluggishness in the finished steel market. The market is experiencing a shortage of scrap, prompting a slight uptick in the acquisition of sponge iron for the steel-making charge mix.
Steel ingot prices in Mandi experienced a decline of INR 300/t, settling at INR 42,300/t at the time of reporting and price normalisation. Concurrently, prices in several significant markets also saw a decrease ranging from INR 100/t to INR 400/t today. In Mandi Gobindgarh, the steel market was navigating through a tough phase, with subdued activity prevailing over the past few weeks amidst the sluggish demand for steel.
Raw materials price update
Sponge iron (CDRI) prices in Mandi witnessed a decline of INR 200/t, settling at INR 30,900/t. However, pig iron (steel grade) prices remained unchanged at INR 39,500/t in Ludhiana on a delivered-at-plant (DAP) basis.
Overview of other markets
In Gujarat's Alang market, ship-breaking melting scrap prices saw a decline of INR 200/t d-o-d on 6 February, 2024, according to SteelMint's evaluation. The prices of HMS (80:20) were evaluated at INR 33,800/t ex-yard. The absence of transactions in semi-finished and finished steel materials during yesterday's trading session, combined with limited buying inquiries for scrap, compelled suppliers to lower their offers today.
In the Raipur steel market, there was a continued decline in steel prices, attributed to sluggish trade inquiries and limited activity in both semi-finished and finished markets. The prices of billets dropped by INR 200/t to INR 39,050, whereas rebar prices decreased by INR 100/t to INR 42,600/t.
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 market: Imported melting scrap prices at Nhava Sheva Port were at around $387-$400/t, which equates to approximately INR 35,421/t(including freight),while local scrap-HMS(80:20) prices in Mumbai remained stable at INR 32,500/t d-o-d.
In India, demand for imported scrap has remained sluggish due to unfavorable price conditions. Indicative offers for shredded scrap from Europe were reported at approximately $415-420/t CFR Nhava Sheva. A trader, operating in northern India, mentioned, "Imports are currently not financially viable in India, so we have refrained from seeking offers. In our region, buyers are only willing to pay up to $395/t CFR for shredded scrap."
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 12,950/t.
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