India: BigMint's ferrous scrap index increases by INR 200/t amid improved trade enquiries
...
BigMint's data for 8 February, 2024 revealed a rise of INR 200/t in the domestic steel scrap index (end-cutting) in Mandi Gobindgarh, reaching INR 37,000/t on a delivered-at-plant (DAP) basis. Today's market displayed improved trade activity, which had been absent in the past few days. Both trading sessions saw a notable increase in activity, indicating a resurgence in interest among steel makers after a period of inactivity.
Steel market
In Mandi, prices of steel ingot rose by INR 200/t, settling at INR 42,400/t during reporting and price normalization. Simultaneously, prices in several significant markets experienced an uptick ranging from INR 100/t to INR 300/t today. Today in Mandi, prices of rebar (Fe500) increased by INR 100/t, reaching INR 46,800/t.
The Mandi steel market witnessed increased trade activity today, 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, steel makers are still waiting for a more robust demand environment, which remained elusive. Furthermore, there was slight scarcity of scrap noted in the market, exacerbated by reduced bookings of imported scrap. This scenario has led mills to contemplate increasing their procurement of sponge iron to adjust their charge mix ratio for steel making in the near term, with Mandi already witnessing an uptick in sponge iron purchases.
Overview of other markets
Prices of ship-breaking melting scrap in Gujarat's Alang market rose by INR 300/t on 8 February, 2024 compared to the previous day. As assessed by SteelMint, HMS (80:20) prices were recorded at INR 33,800/t ex-yard. This uptick in scrap prices was supported by robust demand from IF steel mills situated in Bhavnagar. Additionally, the semi-finished steel market maintained its stability with moderate trading observed.
The Jalna steel market observed moderate trade activities in finished steel in today's trading session. Semi-finished steel prices remained stable and were assessed at INR 42,000/t, whereas rebar prices rose by INR 300/t to INR 48,300/t. In contrast, HMS 80:20 prices showed a slight increase by INR 200/t, reaching INR 32,700/t. Today's demand for finished steel decreased compared to yesterday's trading session.
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-$397/t, which equates to approximately INR 35,146/t(including freight),while local scrap-HMS (80:20) prices in Mumbai remained stable at INR 32,600/t d-o-d. In India, indicative prices for shredded scrap from Europe stood at $410-$415/t CFR Nhava Sheva.
Market participants noted that domestic scrap is significantly cheaper than imported scrap. For instance, recent offers for HMS from the UK (arrival cargo) at $375/t CFR Mundra have garnered little interest from buyers. Domestic scrap is currently available at a $15-20/t discount compared to imported scrap.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 12,900/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.
