India: BigMint's ferrous scrap index drops by INR 300/t ($4/t) - 29 April
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- Moderate demand seen in imported scrap
- Muted trade activity in domestic scrap
- Scrap auction sees higher bids
BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market declined by INR 300/tonne (t) to INR 40,400/t DAP on 29 April, 2024. Market sentiments remained subdued with lacklustre trade activity prevailing in Mandi. The most notable price drop occurred in Mandi's end cutting scrap, plummeting by INR 600/t. Similarly, other grades experienced a decline of INR 400/t w-o-w to INR 500/t in the region.
During week 17, scrap suppliers faced a challenging period characterised by low-volume transactions and cautious procurement from mills in the Mandi steel market. Moreover, prices and demand for other substitute raw materials like sponge iron (CDRI) also witnessed a slight downturn throughout the week.
In Mandi, CDRI prices held stable at INR 34,600/t. Pig iron (steel grade) prices remained unchanged at INR 42,000/t DAP in Ludhiana.
Semis, finished steel market
Steel ingot prices in Mandi fell by INR 400/t to INR 46,200/t during the price reporting and normalisation phase. On the other hand, semis' prices in other major markets witnessed a decline, ranging from INR 50-INR 600/t. In contrast, prices improved by INR 600/t in Mumbai. Prices climbed up by INR 700/t in Ahmedabad today.
Rebar prices in Mandi decreased by INR 200/t to INR 50,900/t d-o-d with limited trade activity.
Alang scrap market
According to BigMint's assessment on 29 April, 2024, ship-breaking melting scrap prices in Gujarat's Alang increased by INR 400/t d-o-d. HMS (80:20) prices reached INR 37,900/t ($454/t) ex-yard. A scarcity of scrap was evident in the region due to a decline in the number of ships available for dismantling. Scrap suppliers responded to moderate trading in semi-finished steel by adjusting their prices upward.
Major scrap auction result
A major north India-based four wheeler manufacturer held an auction for around 5,000 t of CR busheling scrap (low-manganese) from its Gurgaon facility on 25 April, 2024. The entire quantity was booked at INR 39,700-39,800/t ex-works. The bid price increased by around INR 2,600-2,700/t against the last auction on 22 March at which 4,200 t of the material were sold at INR 37,100-37,200/t exw.
Price highlights
End-cutting, billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,800/t.
Domestic vs imported scrap market: Imported melting scrap prices at Nhava Sheva Port were at around $400-$410/t, which equates to approximately INR 36,422/t(including freight). Local scrap-HMS (80:20) prices in Mumbai rose by INR 400/t d-o-d to INR 35,400/t. In India, indicative prices of shredded scrap from Europe stood at $425-$435/t CFR Nhava Sheva.
Today, demand for imported scrap in India has remained moderate, with buyers now adopting a more selective approach based on their immediate requirements. Over the past 10-12 days, the domestic steel market has seen a significant uptick, leading to a shortage of scrap. Consequently, buyers had been actively procuring imported scrap. However, this trend has slowed, with buyers adjusting their purchasing patterns to match their current needs, resulting in lower bids.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 14,500/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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