India: BigMint's ferrous scrap index increases by INR 200/t amid improved trade enquiries
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BigMint's data for 15 February, 2024 revealed a rise of INR 200/t in the domestic steel scrap index (end-cutting) in Mandi Gobindgarh, reaching INR 36,900/t on a delivered-at-plant (DAP) basis. Today's market displayed improved trade activity, which had been absent in the past few days.
Steel market
In Mandi, prices of steel ingot inched up by INR 50/t, settling at INR 42,400/t during reporting and price normalisation. Simultaneously, prices in several significant markets experienced an uptick ranging from INR 50/t to INR 300/t today.
The Mandi steel market witnessed increased trade activity in the first half of today's session, with buyers showing some interest despite subdued market conditions. Prices in the semi-finished and finished steel segments experienced an uptick, signalling some positive movement. However, in the second half buyers remained silent, and the market witnessed a pause in buying with a slower rate of increase.
Overview of other markets
Alang: Ship-breaking melting scrap prices in Gujarat's Alang market inched up by INR 200/t d-o-d on 15 February, 2024. As per BigMint's assessment, HMS (80:20) prices were assessed at INR 33,900/t exy. Scrap suppliers increased their offers on active demand from Bhavnagar-based induction furnace steel mills along with decent trading activities in semi-finished and finished steel.
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(avg. $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.
In India, demand for imported scrap remained sluggish due to significant price gaps between offers and bids. Indicative offers for shredded scrap from Europe were priced at $415-425/t CFR Nhava Sheva, while bids hovered lower, around $400-405/t CFR.
A trader shared, "Regarding the bulk scrap market, following the news of the iron ore export duty, there seems to be some positive sentiment brewing. I've heard of inquiries starting to emerge in the market."
A representative from a trading company remarked, "The current market indicates that shredded scrap should not exceed $400/t. However, indicative prices from the EU/UK stand at $430-435, creating a $30 gap that renders it economically unviable."
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 12,850/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
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