BigMint’s domestic steel scrap index (end-cutting) index, which tracks the Mandi Gobindgarh market, rose by INR 200/t d-o-d on 14 February, 2024. The index reached INR 36,700/t on a delivered-at-plant (DAP) basis. Today’s market displayed improved trade activity, which had been absent in the past few days. Both trading sessions saw a notable increase in activity, indicating a resurgence in interest among steel makers after a period of inactivity.
In Mandi, prices of steel ingot rose by INR 200/t, settling at INR 42,200/t during reporting and price normalization. Simultaneously, prices in several significant markets experienced an uptick ranging from INR 100/t to INR 300/t today.
A North mill owner has informed that the key border points connecting Delhi with its satellite towns are choked due to multiple diversions ahead of a mega farmers’ march to the national capital, potentially impacting today’s supply chain for smooth scrap delivery. This situation may contribute to price improvements today.
Another scrap stockist informed, “The market is better, people are interested in buying. However, the local market isn’t supportive as demand is consistently low, and there are bleak chances of improvement also the market is experiencing a slowdown primarily because payments are becoming delayed due to ongoing elections.
Overview of other markets
Alang: This morning, ship-breaking melting scrap prices in Gujarat’s Alang market increased by INR 200/t day-on-day. SteelMint assessed the opening prices of HMS (80:20) at INR 33,700/t ex-yard. Moderate trade activities for semi-finished steel were observed in the late hours of yesterday evening.
Raipur: In Central India, in Raipur, finished trade activities have seen some improvement, but prices have not increased significantly.
Jalna: Booking for rebar steel is appropriate in the Jalna market. Today, manufacturers have observed active sales in the spot market, and mills have been able to sell their daily production volume. Additionally, most mills have reported nominal inventories of around 7 days, with dispatches of previously booked materials occurring frequently from their yards.
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 market: Imported melting scrap prices at Nhava Sheva Port were at around $385-$397(avg. $391/t), which equates to approximately INR 34,650/t(including freight),while local scrap-HMS (80:20) prices in Mumbai remained stable at INR 32,500/t d-o-d. In India, indicative prices for shredded scrap from Europe stood at $410-$415/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 12,850/t.
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