India: BigMint's scrap index climbs up by INR 100/t amid mixed sentiments-9 Mar
...
Domestic end-cutting scrap prices in the Mandi Gobindgarh steel market showed an upswing on 9 March, 2024. Prices climbed up slightly by INR 100/tonne (t) to INR 37,900/t DAP. Additionally, steel ingot prices in the region rose by INR 100/t to INR 43,300/t d-o-d, while rebar (Fe500) prices improved by INR 200/t to INR 47,700/t with moderate buying activity.
Weekly scenario of Mandi
In Mandi Gobindgarh, the weekly market exhibited a mixed trend with moderate trade activity, aligning with the expectations of mill owners and reflecting the sentiments revealed by the BigMint scrap index.
According to mill owners and scrap suppliers, the availability and accessibility of scrap were quite favourable in the region. Consequently, many large mills are concentrating solely on domestic steel scrap, leading to the absence of bookings for imported scrap.
"Inventory levels saw a decrease, with some production cuts observed in the Mandi steel market. Mills attributed this to the moderate market trend, and opted to refrain from additional production," a source informed BigMint.
Raw materials price update
In Mandi, the cost of sponge iron (CDRI) increased by INR 100/t, reaching INR 31,100/t, reflecting a surge in sponge iron usage in the area. Concurrently, pig iron (steel grade) prices in Ludhiana remained stable at INR 39,100/t on a DAP basis.
Weekly price change
Steel ingot prices in Mandi Gobindgarh saw an uptrend, rising by INR 400/t. Conversely, end-cutting scrap prices increased by INR 300/t. Furthermore, sponge iron (CDRI) prices saw an increase of INR 200/t, while rebar (Fe500) prices rose by INR 100/t on a weekly basis.
Imported scrap market weekly trend
In India, market activities slowed down over the week due to discrepancies in prices between domestic and imported scrap, compounded by expectations of further drops in offers due to the ongoing decline in Turkish prices. Additionally, buyers exhibited heightened interest in materials arriving in March and April at lower offers, particularly from non-European origins. Shredded scrap offers from UK/Europe saw a weekly average decrease of $9/t to $406/t CFR compared to last week's $415/t CFR.
A representative from a trading company remarked, "The market is currently experiencing a quiet period. We anticipate an improvement in buying activity towards the end of March. With nearly a $20/t gap between domestic and imported scrap prices, offering at this juncture seems futile."
Overview of other markets
Gujarat's Alang market witnessed a INR 300/t increase in scrap prices on 9 March, 2024. HMS (80:20) prices reached INR 34,000/t ex-yard. Trade activity for semi-finished and finished steel was moderate in yesterday's session, with scrap inquiries being moderate as well, leading to suppliers raising prices today.
Today, the Raipur steel market saw a slight uptick in demand for steel products, leading to price hikes in semi-finished and finished steel. Steel scrap suppliers adopted a wait-and-watch approach due to observed disparities in the market. Billet prices rose by INR 200/t to INR 40,400/t, while rebar prices remained stable at INR 46,800/t with decent trade activity.
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: The imported melting scrap prices at Nhava Sheva Port stood at approximately $373-$378/t, equivalent to around INR 33,475/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai remained constant, settling at INR 33,500/t d-o-d.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,500/t.
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 - info@steelmint.com.
