India: BigMint's ferrous scrap index rises by INR 1,400/t ($16.78/t)-15 April
...
The BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh steel market climbed by INR 1,400/tonne (t) to INR 41,600/t DAP on 15 April. The scrap market experienced a subdued trend characterised by price disparities between buyers and sellers. Prices witnessed a sudden jump ranging from INR 1,100/t to INR 1,400/t, introducing an element of uncertainty into the market.
A scrap supplier said: "If prices continue to escalate beyond this range, the majority of scrap buyers may shift their focus towards imported scrap, which has become a more feasible option under the current circumstances."
In the Mandi, sponge iron (CDRI) prices exhibited a robust increase, climbing by INR 1,200/t to INR 34,700/t. Simultaneously, pig iron (steel grade) prices surged by INR 800/t to INR 42,000/t DAP in Ludhiana.
Steel market
Steel ingot prices in the region significantly increased by INR 1,600/t to INR 47,400/t d-o-d, during the reporting and price normalisation phase. In contrast, prices in other major markets saw an increase ranging from INR 1,600/t to INR 2,300/t today.
Today, rebar (Fe500) prices increased by INR 1,400/t to INR 51,700/t ex-works, while in the key market rebar prices improved by INR 1,000/t to 2,700/t.
Market scenario
In today's market, prices have shown an upward trend, with minimal trading activity observed during both halves of the trading session. Many buyers found themselves in a state of confusion regarding the current market situation and have chosen to adopt a "wait and see" approach. Meanwhile, sellers are aiming for higher price quotes in all steel segment (raw material to finished), indicating a divergence in expectations between buyers and sellers. This cautious sentiment among buyers and the ambition of sellers to secure better pricing reflect the uncertain dynamics currently at play in the steel market.
"The steel market appeared uncertain as prices continued to rise, despite demand not showing significant above-average levels. Throughout both halves of the trading session, prices surged by approximately INR 1,000/t-1,600/t. This scenario suggests a nuanced dynamic where factors beyond demand, such as supply chain disruptions or speculative activity, may be contributing to the market's volatility," a mill owner informed BigMint.
Imported market scenario
Today, market activities in India remained subdued as buyers exercised caution in response to a sudden increase in domestic scrap prices. According to market feedback, if domestic scrap prices continue to rise, buyers may turn to imported scrap. However, significant sales were not made due to lack of confidence.
Shredded scrap offers have experienced a slight increase, with prices ranging from $425-$430/t CFR from both the US and Europe. Meanwhile, HMS (80:20) offers from Europe and West Africa are priced at $385-$395/t CFR.
A representative from a trading company commented, "Indian buyers of imported scrap are still in a review mode. Considering the market fluctuations, their new asking prices are $385-$390/t for EU HMS (80:20) and $415-$420/t for EU shredded. West African HMS prices remain at $380-$390/t for both the West Coast and East Coast of India. Domestic steel prices are influencing future scrap bookings, resulting in moderate activity and minimal bookings from importers. Over the past few weeks, sharp fluctuations in the international market have hindered our ability to secure the necessary volume."
Raipur steel market
The Raipur steel market demonstrated positive and healthy growth across the raw material to finished steel segments. Anticipation was built throughout the week, with expectations for a strong final half of trading on Saturday. Steel makers benefited from increased trader interest in spot booking on last Saturday, and even Sunday saw continued market activity with robust demand. However, today's market saw slower trade activity despite prices continuing to trend upward. While there was a positive trajectory in prices, the pace of trading did not match earlier expectations. Sponge iron (PDRI) prices are up by INR 1,900/t to INR 30,600/t; billet prices increased by INR 1,900/t to INR 44,300/t; and rebar (Fe500) prices climbed by INR 2,300/t to INR 48,200/t today. In a nutshell, the market was impacted by production cuts amid power shortages, facing semi-finished & finished goods shortage.
To see BigMint'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 - support@bigmint.co
