India: BigMint's ferrous scrap index falls by INR 300/t d-o-d
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The Mandi Gobindgarh steel market experienced a decrease in prices for domestic end-cutting scrap. Prices declined by INR 300/tonne (t), reaching INR 37,700/t delivered at plant. Mills in the region are procuring domestic scrap at moderate price levels, while the finished steel market witnessed a muted trend today.
Market conditions fluctuated throughout the week, with prices remaining range-bound level, fluctuating by INR 100-200/t.
Steel market
In Mandi, steel ingot prices experienced a dip of INR 300/t, reaching INR 43,000/t during the reporting and price normalization. Correspondingly, prices in various key markets also saw a decline ranging from INR 50/t to INR 300/t today. In the last two days of February 2024, the steel market witnessed improved activity across all segments. However, today, the market experienced a decline, putting sellers under pressure, leading to a decrease in ingot and scrap prices by INR 300 per tonne, additionally rebar(Fe500) prices down by INR 100/t to INR 47,700/t, today.
Imported scrap market
The imported scrap market in India remained quiet due to a lack of buyer interest, while suppliers showed a stronger focus on Pakistan and Bangladesh due to active buying activity in those regions. Shredded scrap was offered at approximately $410-$415/t CFR from Europe and $405-$410/t CFR from the US.
Raw material price update
In Mandi, the price of sponge iron (CDRI) declined by INR 100/t to INR 31,200/t today, while pig iron (steel grade) prices in Ludhiana fell by INR 100/t, settled at INR 39,200 per tonne on a delivered-at-plant (DAP) basis.
Overview of other markets
According to BigMint's assessment, ship-breaking melting scrap prices in Gujarat's Alang market increased by INR 100/t d-o-d on 1 March, 2024. HMS (80:20) prices were recorded at INR 33,700/t ex-yard. Semi-finished steel prices witnessed a INR 100/t rise in the region during trading sessions yesterday, prompting suppliers to adjust their offers higher today given the moderate interest in purchasing scrap.
Activity in the Raipur steel market was mixed across trading sessions, with limited buyer participation observed in semi-finished products. Billet prices saw a drop of INR 200/t to INR 39,500/t. However, the finished steel segment saw moderate engagement, with rebar (Fe500) prices remaining unchanged at INR 43,300/t compared to the previous day.
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: Imported melting scrap prices at Nhava Sheva Port were at around $377-$388/t, which equates to approximately INR 34,356/t (including freight), while local scrap-HMS (80:20) prices in Mumbai were stable at INR 33,500/t d-o-d.
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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