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India: BigMint's ferrous scrap index rises INR 600/t ($7.22/t)-3 June'24

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Melting Scrap

BigMint Bureau

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3 Jun 2024, 18:41 IST

India: BigMint's ferrous scrap index rises INR 600/t ($7.22/t)-3 June'24

Scrap prices increase by INR 1,000-1,200/t w-o-w

Mandi market participants hope prices will improve further

BigMint's domestic end-cutting scrap index which monitors the Mandi Gobindgarh market in north India rose by INR 600/t to INR 41,900/t DAP on 3 June, 2024. Amidst elections in Punjab the market remained closed for around two days, Saturday and Sunday. This pause has temporarily halted trading. However, today a resurgence of buyer interest was seen signalling a return to renewed market activity.

Scrap prices in Mandi increased by INR 1,000/t to INR 1,200/t w-o-w. The region continues to face shortage of scrap and liquidity problems. However, mills and sellers are optimistic about the near-term outlook, anticipating further rise in steel ingot prices potentially reaching INR 48,000/t or close to it.

Raw material prices

Sponge iron (CDRI) prices increased by INR 400/t to INR 35,200/t in Mandi, while steel-grade pig iron prices in Ludhiana moved up by INR 200/t to INR 43,000/t today.

Steel market

Steel ingot prices in Mandi Gobindgarh rose by INR 600/t to INR 47,600/t DAP. Similarly, prices in other markets also witnessed an increase ranging from INR 400/t to INR 1,000/t today. In Rourkela and Ahmedabad, prices surged INR 1,000/t fuelled by improved trading.

Overview of other markets

Ship-breaking melting scrap prices rose by INR 500/t Gujarat's Alang, marking the fifth consecutive day of upward movement. HMS (80:20) prices were assessed at INR 39,500/t ($476/t) ex-yard. The region saw a significant increase in demand for semi-finished and finished steel. Suppliers responded to purchasing interest from Bhavnagar-based mills by raising their offers today.

Price highlights

End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,600-5,700/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $395-$400/t, which equates to approximately INR 35,449/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai increased by INR 200/t to INR 36,700/t d-o-d. In India, indicative prices of shredded scrap from Europe stood at $415-$420/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 stands at INR 16,850/t.