India: BigMint's ferrous scrap index hits 15-month low amid subdued steel market
...
According to BigMint's report on 7 February, 2024, the index for domestic steel scrap (end-cutting) in Mandi Gobindgarh declined by INR 100/tonne (t), reaching INR 36,800/t on a delivered-at-plant (DAP) basis. Mandi's scrap market has seen a downward trajectory for the fourth day in a row, hitting its lowest price point in fifteen months since 18 November, 2022. Despite sluggish pace of operations, mills in Mandi continued to procure domestic scrap at a satisfactory level. In the scrap market, significant volume of trades were notably absent in the region.
At present, imported steel scrap is not feasible for steel manufacturers in Mandi. Consequently, steel mills are prioritising domestic scrap and sponge iron for their steel-making processes. There were minimal transactions observed in imported scrap deals during the current month in the region.
Semis' market
In Mandi, prices of steel ingots remained unchanged d-o-d, settling at INR 42,200/t during reporting and price normalisation. It may be noted here that ingot prices also hit 15-month low because demand of semis was subdued as finish market was muted. Concurrently, prices in various significant markets saw a decrease ranging from INR 100/t today. The finished steel sector in the region observed slow market pace as steel demand is not favourable for steel makers. Prices of rebar (Fe500) in the region experienced a decrease of INR 1,000/t on a m-o-m basis.
Overview of other markets
On 7 February, 2024, ship-breaking melting scrap prices in Gujarat's Alang market witnessed a decline of INR 300/t d-o-d, as per the assessment by BigMint. The assessed price for HMS (80:20) was INR 33,500/t ex-yard. Semi-finished steel prices in the region dropped by around INR 300-500/t during yesterday's trading session. Suppliers responded to the disparity between bids and offers for scrap by lowering their offers today.
Mumbai's IF route rebar (Fe 500) prices remained stable d-o-d at INR 48,000/t exw. Good trading activities were observed in the finished steel market. Scrap (HMS 80:20) prices stand at INR 32,600/t DAP. Conversion spread from scrap to billet was hovering at INR 10,000/t.
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 $387-$396/t, which equates to approximately INR 35,063/t(including freight),while local scrap-HMS (80:20) prices in Mumbai were up by INR 100/t to INR 32,600/t d-o-d.
In India, demand for imported scrap remained low due to unfavourable pricing. Shredded scrap from Europe was offered at $410-415/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 12,950/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.
