India: BigMint's scrap index rises by INR 300/t on improved trading

The latest report from BigMint on 29 February, 2024, revealed a price hike in domestic end-cutting scrap at the Mandi Gobindgarh steel market. Prices rose by INR 300/t, reaching INR 38,000/t delivered at the plant.

Today, scrap procurement faced a slight tightening from mills as scrap prices increased, which can be attributed to improvements in the semi-finished steel market. However, there was an observed improvement in trading activity in Mandi today, particularly in the finished steel segment.

Steel market

In Mandi, there was an increase in steel ingot prices by INR 200/t, reaching INR 43,300/t during reporting and price normalisation. Similarly, several notable markets also witnessed an uptrend in prices ranging from INR 100/t to INR 300/t today. The later part of yesterday's trading session proved favourable for steel makers, driven by spot demand which pushed activity higher. Buyers were once again active in the market. However, today, the market appears to exhibit a more moderate trend, with decent activity observed particularly in finished steel, especially in the rebar segment. Rebar prices bucked the trend, rising INR 300/t to reach INR 47,800/t.

Raw material price update

In Mandi, the price of sponge iron (CDRI) increased by INR 100/t to INR 31,300/t, while pig iron (steel grade) prices in Ludhiana remained stable at INR 39,300/t on a delivered-at-plant (DAP) basis.

Overview of other markets

Durgapur: Overall, market continued to witness an upward trend this week in semi-finished and finished long segments because of strong price trend across the region. Trades were moderate as no bulk bookings appeared from the buyers' side. Market participants are expecting an improvement in finished long sales in coming days.

Gujarat's Alang market saw a marginal uptick of INR 100/t in ship-breaking melting scrap prices on 29 February, 2024, according to BigMint. HMS (80:20) prices were recorded at INR 33,600/t ex-yard. The trading session yesterday showed improved trade activities for semi-finished and finished steel in the region, fostering moderate buying interest for scrap today, prompting suppliers to adjust their offers upward.

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 Port were at around $377-$391/t, which equates to approximately INR 34,622/t (including freight), while local scrap-HMS (80:20) prices in Mumbai were stable at INR 33,500/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 13,450/t.

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

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