India: BigMint's scrap index marginally increases by INR 100/t amid muted trade

• Mills procuring scrap on need-based level
  
  
• Alang scrap prices constant for third day in a row
  
  

BigMint's domestic end-cutting scrap index tracking the Mandi Gobindgarh market slightly increased by INR 100/t to INR 37,800/t DAP on 23 July, 2024.

The Mandi steel market has shown no significant changes, with demand for semi-finished and finished steel remaining sluggish. Overall, the market appears to be in a paused state, with no major volumetric deals occurring in either trading session.

Mills are procuring scrap on a need-based level and are also exploring offers for imported scrap. However, the imported scrap market is experiencing bid disparities between buyers and sellers, adding to the market's overall inertia. As a result, the sector continues to face challenges in both supply and demand.

A mill owner told BigMint, "Mills were hoping for a profitable budget that would benefit the steel industry, particularly through a reduction in GST on steel scrap. However, the recent budget has not provided the anticipated support leaving mills dissatisfied with the current fiscal policies and their impact on the industry."

Additionally, ferrous scrap imports continued to be subject to zero import duty.

Raw materials overview

Sponge iron (CDRI) prices in Mandi remained stable at INR 30,000/t. Moreover, pig iron (steel grade) prices in Ludhiana rose by INR 200/t to INR 40,200/t DAP.

Steel market

In the Mandi region, steel ingot prices were slightly up by INR 100/t to INR 42,700/t today during the price reporting and normalisation phase. Meanwhile, prices in other key markets moved up by INR 100/t to INR 400/t. The Ghaziabad steel market has seen the most significant rise by INR 400/t in semis prices d-o-d.

Rebar (Fe500) prices fell by INR 200/t to INR 47,400/t today. On a weekly basis, prices have significantly declined by INR 1,400/t.

Overview of other markets

On 23 July, 2024 ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged for the third day in a row, according to BigMint. HMS (80:20) prices were steady at INR 35,200/t ($421/t) ex-yard. Even though semi-finished steel prices dipped in the region yesterday, consistent buying inquiries from Bhavnagar-based IF steel mills led suppliers to keep their offers stable.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 4,900-5,300/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at around $385-$390/t, which equates to approximately INR 34,841/t (including freight), while local scrap, HMS (80:20), prices in Mumbai remained stable at INR 33,500/t today. In India, indicative prices of shredded scrap from Europe stood at $410-$415/t CFR Nhava Sheva.

Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,450/t.

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

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