India: BigMint's scrap index remains stable on moderate buying enquiries
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On 5 March, 2024, BigMint's domestic scrap (end-cutting) index held firm at INR 37,800/t DAP Mandi Gobindgarh. Despite fluctuations in trade dynamics, the Mandi market saw a steady supply of scrap catering to the requirements of mills.
Steel market
Today, steel ingots prices in Mandi remained unchanged and settled at INR 43,100/t at the time of reporting and price normalisation. Prices in almost all the key markets increased by up to INR 300/t.
In the Mandi Gobindgarh steel market, trade activities persisted within a stable range for both semi-finished and finished steel. Steel makers observed sufficient availability of scrap today, anticipating a continuation of the range-bound market in the upcoming week. Meanwhile, major market players continued to prioritise domestic steel scrap and sponge iron over imported scrap.
Raw material price update
In Mandi, the price of sponge iron (CDRI) held steady at INR 31,000/t with moderate demand, while pig iron (steel grade) prices in Ludhiana increased by INR 100/t, reaching INR 39,300/t on a delivered-at-plant (DAP) basis.
Imported scrap market
The imported ferrous scrap market in India remained sluggish, with buyers showing a preference for purchasing scraps scheduled to arrive in March and April at reduced offer prices. Reports indicated that shredded scrap from Europe and the US was priced between $405-410/t CFR.
A representative from a trading company commented, "There's a significant amount of distress sales happening in the market, making it entirely a buyer's market."
Overview of other markets
Hyderabad: The market overall remained positive, billet offers were hovering at INR 42,000/t exw. TMT prices, on the other hand, surged up by INR 750/t as good demand was seen in the finished segment over the past 2-3 days. This rise in steel prices also led to a slight rise in melting scrap prices. HMS 80:20 prices were up by INR 200/t on a d-o-d basis.
Gujarat's Alang witnessed a slight uptick in ship-breaking melting scrap prices, rising by INR 100/t d-o-d on 5 March, 2024, as reported by BigMint. HMS (80:20) prices were recorded at INR 33,700/t ex-yard. Robust trade activities seen in the semi-finished and finished steel sectors across major markets in the region, coupled with moderate involvement in the scrap market, prompted suppliers to hike prices today.
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 $375/t-$383/t, equivalent to around INR 33,953/t (including freight charges). Meanwhile, local scrap prices for HMS (80:20) in Mumbai saw a daily increase of INR 100/t, reaching INR 33,700/t.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,350/t.
To see BigMint's melting scrap assessment, pricing methodology and specification documents, Click here
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