India: BigMint's ferrous scrap index drops by INR 400/t ($5/t) amid muted trading

BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh steel market decreased by INR 400/tonne (t) to INR 41,200/t DAP on 16 April. No significant deals were closed in the scrap market as mills anticipate further declines in the near term.

Prices of other substitute raw materials such as sponge iron (CDRI) decreased by INR 100/t to INR 34,600/t. Meanwhile, pig iron (steel grade) prices in Ludhiana remained unchanged at INR 42,000/t.

Steel market

Steel ingot prices in the region dropped by INR 500/t to INR 47,000/t, during the price reporting and normalization phase. On the other hand, prices in other major markets witnessed a decline, ranging from INR 100-INR 600/t today.

Today, rebar prices held steady at INR 51,700/t ex-works, with limited trade activity observed.

Market scenario

In the Mandi market, the situation remains relatively unchanged compared to yesterday's trading session, with only essential trade activity observed. Prices have declined in both scrap and semi-finished steel segments, with buyers anticipating further drops in steel prices as scrap and semi-finished prices fell by around INR 400-INR 500/t. However, finished steel (rebar) prices remained unchanged, accompanied by subdued market activity.

Imported scrap market

Today in India, the demand for imported scrap remained sluggish, with buyers hesitant due to uncertainties in price trends and the looming elections later this week. Buyers are exercising caution before committing to significant purchases. Additionally, there exists a disparity between bid and offer prices in the market, leading to ongoing negotiations.

Indicative offers for shredded scrap from the US and Europe hovered around $420-$430/t CFR, while offers for HMS (80:20) from Europe and West Africa were in the range of $390-$395/t CFR.

Alang market scenario

Ship-breaking melting scrap prices in Gujarat's Alang increased by INR 1,000/t d-o-d on 16 April. HMS (80:20) prices were assessed at INR 36,500/t ($437/t) exy. Semi-finished prices rose by approximately INR 1,900/t ($23/t) in the region, driven by active buying inquiries for semi-finished and finished steel, as well as active trade activities in scrap, prompting suppliers to raise their offers today.

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