India: BigMint's scrap index continues to rise amid active trades
...
BigMint's domestic steel scrap (end-cutting) index in Mandi Gobindgarh rose by INR 100/t, reaching INR 36,900/t on a delivered-at-plant (DAP) basis. Additionally, local buyers of steel scrap continued to be active in today's market, given the relatively slow arrival of steel scrap over the past few days.
In the region, steel ingot prices increased by INR 100/t to INR 42,400/t during reporting and price normalisation. Concurrently, prices in various markets also saw an uptick, ranging from INR 100/t to INR 200/t today. Today, the semi-finished and finished steel markets experienced moderate activity as mills were occupied with fulfilling their earlier bookings. Rebar (Fe500) prices rose by INR 200/t to INR 46,900/t exw on improved trading.
Mandi market scenario
In the last week of March, scrap buying is expected to slow down due to financial year-end. The majority of mills are opting for early buying and restocking ahead of the fiscal closing. Steelmakers are optimistic that the last two days of this week will witness improved trade activity and a slight increase in steel prices. However, they anticipate disruptions in the market for three to four days after the Holi festival, with buyers remaining subdued, posing a risk of another market downturn.
Raw materials prices
In Mandi, there was an increase in sponge iron (CDRI) prices by INR 100/t, reaching INR 31,100/t. Meanwhile, pig iron (steel grade) prices in Ludhiana fell by INR 100/t to INR 38,800/t on a DAP basis.
Overview of other markets
No fluctuations were observed in ship-breaking melting scrap prices in Alang, Gujarat, on 21 March, 2024, according to the latest report from BigMint. HMS (80:20) prices held firm at INR 34,000/t ($409/t) ex-yard. In yesterday's trading session, prices of semi-finished steel remained unchanged, and scrap suppliers decided to uphold their firm offers today owing to moderate demand for scrap at prevailing price levels.
In the Maharashtra-based Jalna steel market, prices for semi-finished steel remained unchanged and were assessed at INR 42,000/t, while finished steel prices dropped INR 100/t to INR 48,600/t. Meanwhile, HMS 80:20 prices saw a slight increase of INR 100/t to INR 32,800/t. The demand for finished steel is at a moderate level in today's trading session. According to market sources, "Prices of rebar may decline in the coming days due to the approaching Holi festival and the end of the financial year."
Imported scrap market
According to a traders, there has been robust booking activity over the past 5-6 days, although enquiries have slowed today. Reports indicate that HMS from West Africa and South America, totaling approximately 3,000-4,000 t, were sold at $375-$385/t CFR Chennai. In the Indian market, shredded scrap from the UK/EU remains viable at $400/t, given the prevailing demand. However, some suppliers are aiming for $390-$392/t for US materials. Notably, there is a surplus of offers from West Africa and Brazil compared to those from the UK or US.
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: Imported melting scrap prices at Nhava Sheva were at around $371-$379/t, which equates to approximately INR 33,697/t (including freight),while local scrap, HMS (80:20), prices in Mumbai remaining stable at INR 33,000/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 13,200/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.
