India: BigMint's ferrous scrap index up INR 200/t d-o-d

• Steel prices in Mandi witness uptick
  
  
• Scrap prices in Alang rise INR 300/t d-o-d
  
  

BigMint's domestic end-cutting scrap index increased by INR 200/t to INR 37,700/t DAP Mandi Gobindgarh on 27 June, 2024. The Mandi steel market observed a spike in spot demand and positive price movements yesterday. Today, the market held steady, with scrap prices rising.

Raw materials

Sponge iron (CDRI) prices in Mandi increased by INR 300/t to INR 30,600/t. Meanwhile, steel-grade pig iron prices in Ludhiana remained stable at INR 39,900/t today.

Steel market

Steel ingot prices in Mandi Gobindgarh improved by INR 200/t to INR 43,500/t during the price normalization phase. Meanwhile, semi-finished steel prices across markets increased by INR 100 to INR 600/t, with Rourkela witnessing the most significant rise of INR 600/t today.

In Mandi, rebar (Fe500) prices went up by INR 200/t to INR 48,200/t exw on slight improvement in trades.

Overview of other markets

According to BigMint's assessment, ship-breaking melting scrap prices in Gujarat's Alang rose by INR 300/t d-o-d on 27 June'24. HMS (80:20) prices were assessed at INR 36,300/t ($435/t) ex-yard. The second half of yesterday's trading session saw an increase in semi-finished steel prices in the region. Additionally, strong buying inquiries for scrap from induction furnace mills in Bhavnagar prompted scrap suppliers to raise 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 $385-$390/t, which equates to approximately INR 34,741/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai remained stable at INR 33,700/t. In India, indicative prices of shredded scrap from Europe stood at $410-$412/t CFR Nhava Sheva.

In India, the demand for imported scrap remains sluggish due to volatility in the domestic market making buyers cautious about procuring imported scrap. Additionally, there is still a persistent bid-offer disparity, with buyers aiming to procure at $5-10/t less than offered prices, leading to intense negotiations and very few concluded deals.

A trader source commented: "Here in the northern region, buyers are asking at least $10/t below prevailing offers. The domestic market is down and due to delayed shipments customers are receiving previously booked cargoes, plus sponge iron is cheaper."

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 14,700/t.

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

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