India: BigMint's ferrous scrap index falls by INR 100/t d-o-d

BigMint's index for domestic steel scrap (end-cutting) in Mandi Gobindgarh recorded a drop of INR 100/t on 16 February, 2024, reaching INR 36,800/t on a delivered-at-plant (DAP) basis. The mills in Mandi are acquiring domestic scrap at a subdued level today, aligning with the sluggish activity observed in the finished steel market.

Semis' market

In Mandi, prices of steel ingot dropped by INR 100/t, settling at INR 42,300/t during reporting and price normalisation. Simultaneously, prices in several key markets experienced a decline of up to INR 50/t-300/t.

"While the semi-finished and finished steel market experienced some positive movement yesterday, today's market witnessed moderate trade activity. However, overall demand for finished steel remained weak, and the market conditions remained relatively stagnant, resulting in the absence of significant deals in Mandi," a trader informed BigMint.

Overview of other markets

Alang: Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 16 February, 2024. As per BigMint's assessment, HMS (80:20) prices stood at INR 33,900/t exy. Despite the rise in semi-finished steel prices during yesterday's trading session, the presence of moderate buying inquiries for scrap in the region has encouraged suppliers to maintain stable offers today.

Chennai: In the Chennai market, situated in south India, semi-finished, finished steel and HMS 80:20 prices remained steady and were assessed at INR 43,000/t, INR 47,300/t and INR 31,800/t. Trade movements in finished steel were restricted in today's trading session.

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 $385-$395 (average $390/t), which equates to approximately INR 34,600/t(including freight),while local scrap-HMS (80:20) prices in Mumbai remained stable at INR 32,500/t d-o-d.

A trader commented, "Imports have become economically impractical in India, leading buyers to favor local sources or alternatives like sponge. The few transactions occurring involve arrival cargoes, with the maximum price for HMS capped at $385/t. Fresh bookings in the market are currently scarce due to these prevailing circumstances."

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 12,750/t.

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