India: BigMint's scrap index rises slightly amid moderate trading activities
...
On 30 January, 2024, BigMint's domestic steel scrap (end-cutting) index increased by INR 100/t settling at INR 37,600/t on a delivered-at-plant (DAP) basis in Mandi Gobindgarh. The Mandi steel market continues to witness moderate trade activity with mills procuring decent scrap volumes. Major mills are maintaining 24x7 production, and the supply of sponge iron remains steady from Durgapur. Moreover, mild scarcity of scrap was seen in the region.
Semi-finished steel market
In Mandi, there was an upward movement in steel ingot prices today, with a rise of INR 200/t seen as prices reached INR 43,000/t during the reporting and normalization process. Similarly, other major markets also witnessed an increase in ingot prices, ranging from INR 100-300/t.
Raw material prices
In Mandi, the price of sponge iron (CDRI) rose by INR 200/t, reaching INR 31,500/t. Pig iron (steel grade) prices in Ludhiana remained stable d-o-d at INR 39,500/t DAP.
Snapshots of other markets
BigMint's assessment indicates a day-on-day increase of INR 200/t in ship-breaking melting scrap prices in Gujarat's Alang market on 30 January. HMS (80:20) prices were recorded at INR 34,200/t ex-yard. Scrap suppliers adjusted their prices upwards driven by robust demand from Bhavnagar-based induction furnace steel mills and steady trading in semi-finished steel.
Trade activity in Chennai showed improvement today, particularly in the semis market. Billet prices rose by INR 500/t, reaching INR 43,000/t, while rebar (Fe500) prices remained stable day-on-day amid moderate trade inquiries.
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 $388-$393/t, which equates to approximately INR 34,864/t (including freight), while local scrap-HMS (80:20)-prices in Mumbai stood at INR 33,000/t stable d-o-d.
Demand for imported scrap in India remained lacklustre due to pricing unviability, coupled with subdued sales of finished steel in the domestic market. No firm offers were reported from Europe. However, indicative prices from the US were at $410/t CFR for shredded scrap.
According to a steel mill spokesperson, "The stagnation in finished steel prices is a result of weak demand in the sector. Current prices of sponge iron are lower than those of scrap, and unfavourable freight rates are leading to poor realisations for importers. The significant gap between offers and bids poses a challenge, with limited possibilities for identifying workable levels in both bulk and container segments."
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,050/t.
To see SteelMint's melting scrap assessment, pricing methodology and specification documents, Click here
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.
