India: BigMint's ferrous scrap index slides down by INR 100/t - 18 Apr

BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh steel market decreased by INR 100/tonne (t) to INR 41,700/t DAP on 18 April. Today, there was a noticeable decrease in scrap buying activity from mills. This resulted in a price decline of INR 100-400/t across all grades compared to yesterday. Additionally, some mills have reduced their purchase prices and are requesting discounts from scrap suppliers.

Prices of alternative raw materials like sponge iron (CDRI) rose by INR 500/t to INR 35,200/t with decent trading recorded. Conversely, pig iron (steel grade) prices in Ludhiana dropped by INR 100/t to INR 42,400/t delivered at plant (DAP).

Steel market overview

Steel ingot prices in Mandi fell by INR 100/t to INR 47,400/t, during the price reporting and normalization phase. On the other hand, prices in other major markets witnessed a uptick, ranging from INR 100-INR 200/t, today.

Prices for rebars (Fe500 grade) saw a jump of INR 200/t to INR 52,000/t today. This surge follows a period of active trading in the market over the past couple of days.

"The steel market has been experiencing frequent price spikes from 1 April to the middle of the month. However, there is confusion among buyers and sellers regarding the sudden upward trend. Buyers are hoping for price decreases, whereas sellers are looking for more upward momentum. This discrepancy has resulted in uncertainties in major markets, discouraging many mills from purchasing imported scrap, which is currently priced lower than domestic," a mill owner told BigMint.

Imported scrap market scenario

In India, there has been a slight uptick in demand for imported scrap, driven by higher prices in the domestic scrap market. However, this shift is gradual, with buyers opting for imported scrap only when necessary, as alternatives like sponge are more cost-effective locally. Indicative pricing for shredded scrap from the US and Europe hovered around $420-430/t CFR, while HMS (80:20) was assessed at $395-400/t CFR.

According to a trader source, "The market sentiment is positive, but purchases are made on need basis. When comparing imported scrap to local sponge, the latter is more appealing to buyers, especially those in Gujarat. Demand has been relatively sluggish in the past couple of months, creating a challenging environment that requires proactive sales efforts."

Alang market

Ship-breaking melting scrap prices in Gujarat's Alang increased by INR 500/t d-o-d on 18 April. HMS (80:20) prices were assessed at INR 36,800/t ($425/t) exy. Trade activities increased for semi-finished and finished steel in yesterday's trading session in the region, accompanied by active buying inquiries for scrap by the IF mills in Bhavnagar, Gujarat. This prompted suppliers to increase their offers today.

To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here

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