India: BigMint's scrap index inches up by INR 100/t ($1/t) in slow trade- 11 Apr

The BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh steel market rose by INR 100/tonne (t) to INR 40,100/t DAP on 11 April.

In Mandi, sponge iron (CDRI) prices surged by INR 400/t to INR 33,400/t due to enhanced demand. Meanwhile, pig iron (steel grade) prices held steady at INR 40,800/t DAP in Ludhiana.

Steel market scenario

Steel ingot prices in the region rose by INR 100/t to INR 45,700/t d-o-d, during the reporting and price normalization phase. In contrast, prices in other major markets saw an increase ranging from INR 100/t to INR 400/t today.

Today, rebar (Fe500) prices remained steady, settling at INR 50,300/t ex-works. However, on a weekly basis, prices increased by INR 700/t.

"In Mandi, there was moderate trade activity observed in the semi-finished steel market, indicating a stable trend with no significant fluctuations expected in the next couple of days. However, today, most scrap sellers held onto their materials due to limited demand from mills," a mill owner informed BigMint.

Overview of Jalna steel market

In the Jalna market, located in western India, semi-finished and finished steel prices remained stable, assessed at INR 43,700 and INR 50,300/t, respectively. Meanwhile, HMS 80:20 prices edged up by INR 200/t to INR 33,700/t. Market sources said, "Due to the arrival of the Eid festival, the influx of scrap is slow, prompting mill owners to raise their scrap purchase prices. However, demand for finished steel remains at an average level."

Imported scrap market

Today, in the South Asian ferrous scrap market, there was a moderate level of activity. Indian buyers chose to adopt a cautious stance, refraining from actively seeking imported scrap due to narrow profit margins in the domestic steel market. Indicative prices for shredded scrap from Europe were reported at $420-425/t CFR, while HMS (80:20) prices held steady at $385-395/t CFR from Europe and West Africa. Market activity in Pakistan and Bangladesh was minimal due to the observance of Eid, with operations expected to resume around 15 April.

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