India: BigMint's ferrous scrap index falls by INR 200/t($2.40/t)-12 April

The BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh steel market fell by INR 200/tonne (t) to INR 39,900/t DAP on 12 April. Currently the market witnessed slow trade pace activity in semi-finished and finished steel, furthermore scrap prices down by INR 1,100/t TO 1,500/t on weekly basis.

In Mandi, the prices of sponge iron (CDRI) dropped by INR 200/t to INR 33,200/t. Meanwhile, pig iron (steel grade) prices remained unchanged at INR 40,800/t DAP in Ludhiana.

Steel market

In the region, steel ingot prices saw a decline of INR 200/t to INR 45,500/t d-o-d during the reporting and price normalization phase. Conversely, prices in other significant markets experienced an uptick ranging from INR 100/t to INR 300/t today.

Today, rebar (Fe500) prices experienced a decrease of INR 200/t to INR 50,100/t ex-works, amid limited trade activity. However, w-o-w prices dipped by INR 900/t.

During the current week, the demand for steel remained subdued in the Mandi market. However, steel producers are optimistic that the upcoming week will bring a more positive outlook compared to the current one.

Overview of other market

Mumbai's IF route Rebar (Fe 500) prices remained stable d-o-d at INR 49,800/t exw. Market witnessed a limited trading activities in finished steel as buyers are only opting for need based purchase as they have already booked adequate material in the previous week. Scrap (HMS 80:20) prices stands at INR 34,000/t DAP. Conversion Spread from scrap to billet hovering at INR 9,100/t.

On 12 April, 2024, ship-breaking melting scrap prices remained unchanged in Alang, Gujarat, marking the third consecutive day of stability. BigMint's assessment reported HMS (80:20) prices holding firm at INR 34,700/t ($416/t) ex-yard. Semi-finished steel prices also maintained their stability during yesterday's trading session in the region, with moderate trade activities in scrap encouraging suppliers to maintain stable prices.

Imported scrap market

Today, in the South Asian ferrous scrap market, there was a moderate level of activity. Indian buyers chose to adopt a cautious stance, refraining from actively seeking imported scrap due to narrow profit margins in the domestic steel market. Indicative prices for shredded scrap from Europe were reported at $420-$425/t CFR, while HMS (80:20) prices held steady at $385-$395/t CFR from Europe and West Africa. Market activity in Pakistan and Bangladesh was minimal due to the observance of Eid, with operations expected to resume around 15 April.

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