India: BigMint's scrap index decreases by INR 200/t amid moderate trade
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- Moderate trade activity seen in Mandi market
- Bulk shipment scheduled to arrive at Chennai port soon
BigMint's domestic end-cutting scrap index fell by INR 200/t to INR 37,500/t DAP in the Mandi Gobindgarh market on 26 June, 2024. In the second half of today's trading session, there was noticeable trade movement compared to recent days, with moderate buying activity seen in the market.
Raw materials
Sponge iron (CDRI) prices in Mandi experienced a slight decrease of INR 200/t, bringing the price to INR 30,300/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 fell by INR 100/t to INR 43,300/t during the price normalization period. Simultaneously, semi-finished steel prices in major markets saw declines ranging from INR 100 to INR 400/t, with Ghaziabad experiencing the largest drop of INR 400/t. However, Raipur, Raigarh, Mumbai, and Jaipur markets observed some upward movement, with prices increasing by INR 100-400/t. A mixed trend market sentiments was observed in the semi-finished steel market today.
Rebar(Fe500) prices slides by INR 400/t to INR 48,000/t exw in Mandi.
Overview of other markets
BigMint's latest assessment shows that ship-breaking melting scrap prices in Gujarat's Alang market dropped by INR 300/t ($3.6/t) on 26 Jun'24. HMS (80:20) prices stood at INR 36,000/t ($431/t) ex-yard. The region's semi-finished steel prices decreased by INR 600-700/t during yesterday's trading session due to limited demand. Consequently, moderate trade activities in scrap prompted suppliers to reduce 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 $388-$390/t, which equates to approximately INR 34,737/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai decreased by INR 300/t to INR 33,700/t. In India, indicative prices of shredded scrap from Europe stood at $412-$416/t CFR Nhava Sheva.
Indian buyers are currently hesitant to book imported scrap due to a sluggish domestic steel market and continuous declines in domestic scrap prices, leading to uncertainty and expectations of further drops in imported scrap offers. The upcoming rainy season in major Indian regions is also expected to impact scrap buying in the near term. For instance, domestic HMS (80:20) scrap prices stood at around INR 34,600 on 22 June (last week closing), marking a drop of INR 1,100/t to INR 33,500/t DAP Jalna today.
Additionally, a bulk scrap cargo from Richmond port, San Francisco, on the US West Coast, is scheduled to arrive at Chennai port by June 29, 2024. This shipment, booked by a Chennai-based steel mill, consists of approximately 30,000 t of mixed scrap, mainly shredded and bonus scrap. The price details of the bulk vessel were not confirmed at the time of reporting.
Recent imported deals
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 14,750/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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