BigMint’s domestic steel end-cutting scrap index for Mandi Gobindgarh climbed by INR 400/t to INR 38,400/t DAP. The market saw some improved trading activity in all steel segment from past couple of days, although shortage of scrap persisted in Mandi steel market. Prices for various grades of scrap in the region surged by INR 1,000-1,400/t on a w-o-w basis.
In Mandi, steel ingot prices rose by INR 400/t to INR 44,000/t, during the reporting and price normalisation period. Conversely, prices in other markets saw an uptick, ranging from INR 200/t to INR 450/t. In the past two days, there has been an uptick in spot demand in Mandi, leading to an increase in steel prices. On a weekly basis, ingot prices increased by INR 1,400/t.
In the region, the finished steel market, particularly for rebar (Fe500), witnessed robust demand, resulting in an increase in prices by INR 800/t to INR 48,400/t ex-works.
Short scenario
Steel prices in Mandi saw an improvement attributed to several factors, including a shortage of raw materials, delayed scrap arrivals from neighbouring states due to stringent checks, production cuts by small mills, and renewed demand, particularly in finished steel segments.
Raipur steel market
In the Raipur steel market, billet prices saw an increase of INR 450/t, reaching INR 40,950/t, while the rebar (Fe500) market rose by INR 600/t to INR 44,200/t ex-works. Additionally, raw material prices also witnessed a notable rise, with sponge iron (PDRI) increasing by INR 250/t to INR 27,750/t, and pig iron (steel grade) prices climbed by INR 200/t to INR 37,400/t today.
Imported scrap market
Today in India, there was a slight uptick in inquiries, albeit the pace of activity remained sluggish. This increase in inquiries was driven by a shortage in the domestic market, with a few deals reported from West Africa and the US being recently booked.
According to a trader source, “Imported scrap bookings continued to hover at low levels, with a few buyers showing interest in HMS and shredded scrap from Australia, Brazil, and Latin America, particularly in response to the fluctuating trend in domestic scrap prices in recent days.”
Indicative offers for shredded scrap from the US and Europe were observed at $410-$416/t CFR, while HMS (80:20) offers from West Africa and Europe were assessed in the range of $375-$388/t CFR.
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