India: BigMint's ferrous scrap index falls by INR 800/t ($9.60/t)-22 April

• Semis and scrap market witness price drop of INR 800/t
  
  
• Major auctions for CR busheling scrap lined up
  
  

BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market fell by INR 800/tonne (t) to INR 41,000/t DAP on 22 April'24. Today's market witnessed cautious and selective buying from buyers, resulting in muted trading activity.

Optional raw material

Sponge iron (CDRI) prices dropped by INR 400/t to INR 34,800/t while pig iron (steel grade) prices fell by INR 200/t to INR 42,200/t.

Steel market

Steel ingot prices in the Mandi market dropped by INR 800/t to INR 46,700/t, during the price reporting and normalization phase. On the other hand, prices in other major markets witnessed a decline, ranging from INR 200-INR 800/t today. Furthermore key markets experienced sluggish buying activity today.

Today, rebar (Fe500) prices experienced a slight decrease of INR 200/t to INR 51,800/t, with moderate trading activity observed in offers prices.

A mill owner informed, "The Mandi steel market has witnessed limited trade activity as buyers anticipated a drop of INR 1,000/t due to sluggish buying; however, in the second half of the trading session, semi-finished and scrap prices decreased by INR 800/t".

Imported scrap market

Today, market activities in India exhibited moderation as buyers exercised caution amidst a slowdown in the domestic steel sector. Over the past fortnight, there have been numerous bookings, but now purchases are being made based on immediate requirements. Prices for shredded scrap from the US and Europe were observed at around $420-$425/t CFR, while HMS (80:20) from Europe and West Africa ranged from $395-$405/t CFR.

According to a trader, "In the past two weeks, there was significant activity, but now buyers are negotiating $10/t less. Demand for finished steel is sluggish. When comparing primary primary vs secondary steel prices, the price gap is only INR 1,000-1,500/t, so buyers are inclined towards opting for prime quality material."

A steel mill official from southern India stated, "The market appears relatively stable, with fewer suppliers due to sluggish collection rates."

Major auctions

Maruti Suzuki will hold an auction for approximately 5,000 t of CR busheling prompt scrap (low manganese) from its Gurgaon facility on 25 April, 2024.

OEM suppliers in Pune and Nashik, Maharashtra, are set to auction approximately 4,000 tons of CR busheling scrap in Week 17.

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