India: BigMint's scrap index witnesses continued growth, rises INR 600/t d-o-d

• Positive trends seen in key steel markets
  
  
• Scrap suppliers raise offers
  
  

BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market rose by INR 600/tonne (t) to INR 41,500/t DAP on 1 May, 2024. As prices improved suddenly, major scrap suppliers increased their offers, while some suppliers have chosen to hold onto their material. However, mills continue to struggle to procure scrap at fair prices.

"The market has experienced a sudden price increase on firm demand in the steel sector. Inactive buyers, who were silent over the past couple of weeks, have become active again due to the sudden surge in prices," a mill owner told BigMint.

A steel mill official said that with active buyers in the market, mills are anticipating a positive outlook in the near term. This optimism stems from the rise in raw material prices observed in some other key markets during the last week of April.

Raw materials

Sponge iron (CDRI) prices in Mandi increased by INR 200/t to INR 35,000/t. Meanwhile, pig iron (steel grade) prices in Ludhiana rose by INR 500/t to INR 42,500/t DAP.

Semis, finished steel markets

Steel ingot prices in Mandi Gobindgarh rose by INR 500/t to INR 47,200/t during the price reporting and normalisation phase. Meanwhile, prices of semis in other key markets experienced an increase, ranging from INR 300/t to INR 700/t. The highest rise was seen in the Ludhiana, Muzaffarnagar and Ghaziabad markets, with prices rising by up to INR 700/t d-o-d.

In Mandi, rebar (Fe500) prices rose by INR 500/t to INR 51,600/t, marking a healthy increase driven by robust demand.

Overview of other markets

According to BigMint's assessment on 1 May, ship-breaking melting scrap prices in Gujarat's Alang market edged up by INR 200/t d-o-d. HMS (80:20) prices were reported at INR 38,300/t ex-yard. Furthermore, there was a notable increase of INR 500-600/t in semi-finished steel prices in the region, driven by active enquiries by Bhavnagar-based IF steel mills, prompting suppliers to enhance their price quotations.

In the Raipur steel market, an upward trend continues in prices of steel. Billet prices have risen by INR 550/t to INR 44,300/t; rebar (Fe500) prices have increased by INR 800/t to INR 47,500/t, while sponge iron (PDRI) prices have gone up by INR 500/t to INR 29,500/t, and HMS (80:20) scrap climbed by INR 800/t to INR 37,800/t compared to the previous day.

Price highlights

End-cutting, billets spread: In Mandi, the end-cutting scrap and billets spread was at INR 5,500-5,800/t.

Domestic vs imported scrap market: Imported melting scrap prices at Nhava Sheva Port were at around $400-$406/t, which equates to approximately INR 36,090/t (including freight). Local scrap-HMS (80:20) prices in Mumbai remained stable at INR 35,500/t. In India, indicative prices of shredded scrap from Europe stood at $423-$425/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 14,800/t.

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

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