BigMint’s domestic steel end-cutting scrap index for Mandi Gobindgarh rose by INR 400/t to INR 38,000/t DAP. Increase in scrap prices across grades in the region was largely due to scarcity of scrap. Improved trading activity for semis and finished steel also boosted scrap values.
Today, there was a significant increase in steel ingot prices, climbing by INR 400/t to hit INR 43,500/t during the reporting and price normalisation period. Conversely, prices in other markets saw an uptick, ranging from INR 300/t to INR 700/t.
Rebar prices rose by INR 200/t today, driven by improved trading conditions, settling at INR 47,600/t ex-works.
Market scenario
The current scarcity of scrap in the region, coupled with delay in shipments due to ongoing GST team inspections at borders, presents challenges for the industry, particularly for small mills. These mills have reduced their production levels and are operating for only 10-12 hours. In contrast, larger mills, able to procure scrap in sufficient volumes albeit at higher costs, continue to operate 24 hours a day.
A mill owner told BigMint: “Trade activity in the market improved today after a period of muted activity attributed to the financial year closing. It seems that buyers, who were previously quiet, have resumed their activities today”.
Ship-breaking scrap market
In Alang, Gujarat, ship-breaking melting scrap prices remained unchanged for the third day in a row on 1 April, 2024. According to the assessment by BigMint, HMS (80:20) prices remained constant at INR 34,200/t ex-yard. The prices of semi-finished steel also remained relatively stable in the last trading session in the area, and suppliers opted to keep prices stable amid moderate trade activities in scrap.
Imported scrap market
Today, India’s market for imported scrap remained subdued, not witnessing any significant buying activity at existing prices. In contrast, domestic scrap prices remained favourable. Indicative offers for shredded scrap originating from the US and Europe hovered around $410-$420/t CFR, while offers for HMS (80:20) from West Africa and Europe stood at $375-$390/t CFR.
According to information from a source, “The scrap market may see an uptick once there is notable interest from buyers for future bookings. Over the past three months, there have been only two to three bulk vessel bookings. Furthermore, offers for EU shredded scrap are at $416-$420/t, with bids around $405-$410/t, and domestic scrap prices remain viable, subject to minor fluctuations.”
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