India: BigMint's ferrous scrap index increases by INR 500/t ($6/t) d-o-d

• Scrap prices rise by INR 1,200/t w-o-w
  
  
• Domestic steel market shows a positive trend
  
  

BigMint's domestic end-cutting scrap index in the Mandi Gobindgarh market rose by INR 500/tonne (t) to INR 41,800/t DAP on 3 May, 2024. Scrap prices saw a healthy improvement of INR 1,200/t w-o-w. The scrap market is experiencing a positive trend today, with both buyers and sellers actively engaged in their routine activities.

Raw materials

Sponge iron prices in Mandi rose by INR 300/t to INR 35,300/t. Meanwhile, steel grade pig iron prices in Ludhiana increased by same level and were assessed at INR 42,800/t.

Semis, finished steel markets

Steel ingot prices in Mandi Gobindgarh rose by INR 550/t to INR 47,600/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 900/t. The highest rise was seen in the Muzaffarnagar and Ghaziabad markets, with prices rising by up to INR 900/t d-o-d.

In Mandi, rebar (Fe500) prices rose by INR 400/t to INR 52,000/t, marking a healthy increase driven by robust demand.

Steel market scenario

The market has shown resilience over the past few days, although activity in finished steel has been moderate. During the first half, the market performed well, but as steel ingot prices increased by 100-200/t in the second half, buyers remained cautious and less active in the face of rising prices. Semis' market increased by INR 1,200/t w-o-w.

"The domestic steel market is exhibiting a positive trend in terms of activity, with raw material prices on the rise. Additionally, significant participation was observed in major raw material auctions, with bids increasing. While it is premature to conclude whether prices will rise significantly or remain within normal ranges, although primary mills are also increasing their finished steel prices recently," a mill owner informed BigMint.

Overview of other markets

BigMint's data revealed a slight up of INR 200/t in ship-breaking melting scrap prices at Gujarat's Alang market on 3 May, 2024. The assessment pegged HMS (80:20) prices at INR 38,500/t ex-yard. Trade activities for semi-finished and finished steel picked up during the latter part of the previous trading session in the region. Additionally, suppliers responded to decent demand for scrap by adjusting their offers upward today.

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-$410/t, which equates to approximately INR 36,417/t (including freight). Local scrap-HMS (80:20) prices in Mumbai increased by INR 100/t to INR 36,100/t DAP. In India, indicative prices of shredded scrap from Europe stood at $420-$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 15,050/t.

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

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