India: BigMint's scrap index rises INR 100/t ($1.2/t) amid supply pressure

BigMint's domestic end-cutting scrap price index, which monitors the Mandi Gobindgarh steel market, witnessed an uptick on 27 March 2024, with prices rising by INR 100/t to reach INR 37,200/t DAP. The scarcity of scrap persists in Mandi, along with liquidity crunch in the market.

Semis, finished steel market

In Mandi, steel ingot prices increased by INR 100/t to INR 42,700/t during reporting and price normalisation. Similarly, several other markets also witnessed an uptrend in prices ranging from INR 100-400/t today. Rebar-Fe500 prices increased by INR 200/t to INR 47,100/t following increased trading activity.

Current market condition

The region is expected to face a shortage of scrap due to the slow arrival of domestic scrap. However, with the market opening after a three-day gap, there has been an improvement in spot bookings, leading to enhanced trading activity today.

Additionally, due to March being the last month of the financial year, some mills are procuring lower volumes of scrap. In Mandi, the small steelmakers are operating their mills for only 10-12 hours a day.

Today, India's market for imported ferrous scrap remained subdued, mainly attributed due to holidays. Despite some buyers have come back post holidays, many still seem to be in a holiday mood, resulting in limited activity. Global prices have seen an increase, reflecting higher collection costs and following a recent surge in the Turkish market. Current offers for shredded scrap from Europe are in the range of $412-$415/t CFR, while offers for HMS (80:20) from West Africa and Europe are at $375-$385/t CFR.

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