India: BigMint's ferrous scrap index falls amid market slowdown

BigMint's index for domestic steel scrap (end-cutting) in Mandi Gobindgarh dropped INR 100/t on 6 March, 2024, reaching INR 37,700/t on a delivered-at-plant (DAP) basis. The mills in Mandi are acquiring domestic scrap at a subdued level aligned with moderate activity observed in the finished steel market.

Steel ingot prices in Mandi Gobindgarh saw a decrease of INR 100/t, reaching INR 43,000/t today during reporting and price normalisation. Similarly, other key markets also experienced a decline in prices ranging from INR 50/t to INR 300/t today.

A mill owner said, "The finished steel sector saw moderate activity today, with the market appearing slower compared to the past 3-4 days. The majority of mills anticipate a range-bound price trend in the near term".

According to a scrap supplier, "In Punjab, the arrivals and dispatches of steel are expected to improve in the coming days, as the state borders have started to reopen after the long protests by farmers."

Overview of other markets

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 6 Mar'24. As per BigMint's assessment, HMS (80:20) prices stood at INR 33,700/t exy. Semi-finished steel prices in Gujarat remained almost stable in the yesterday's trading session, and moderate buying enquiries for scrap in the region prompted suppliers to maintain firm offers today.

Chennai: In the Chennai market, prices for semi-finished, finished steel, and HMS 80:20 remained stable, assessed at INR 43,300/t, INR 47,500/t, and INR 32,000/t, respectively. Moderate trade activities were observed in finished steel. According to market sources, mill owners are directing their finished steel supply towards projects due to sluggish demand in the retail market.

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 $375/t-$383/t, equivalent to around INR 33,900/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai saw a daily increase of INR 100/t, reaching INR 33,800/t.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,250/t.

To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here

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