BigMint’s domestic steel end-cutting scrap index in Mandi Gobindgarh increased by INR 600/t to INR 39,000/t DAP on 3 April 2024. Despite the ongoing scarcity of scrap in the Mandi market, trading activity has showed signs of improvement over the past couple of days.
Steel market
Steel ingot prices rose by INR 500/t to INR 44,500/t DAP. Prices in other markets, too, witnessed an uptick, ranging from INR 300/t to INR 700/t.
Rebar (Fe500) prices experienced a significant increase of INR 600/t reaching INR 49,000/t ex-works driven by active trade activities.
Mandi experienced a lack of scrap availability amid increasing demand, leading to an uptick in steel prices since the start of April. Steel producers are eyeing a potential rise in ingot prices to reach the range of 44,700-45,000/t in the near future.
Raw materials prices
Sponge iron (CDRI) prices in Mandi rose by INR 500/t to INR 32,500/t DAP, while pig iron (steel grade) prices in Ludhiana remained stable at INR 39,400/t d-o-d.
Imported scrap market
The imported scrap market in India experienced a slight increase in activity, driven by heightened inquiries amidst shortage in the domestic market. Shredded scrap offers from the US and Europe were at $410-$415/t CFR, while HMS (80:20) offers from West Africa and Europe ranged between $380 and $390/t CFR.
From Latin America, HMS 1 offers were reported at $400-405/t CFR, while Yemen offered HMS bundle mix scraps at around $375-$380/t CFR.
A source associated with a major trading house said that an improvement in market sentiment, fuelled by increased inquiries for imported scrap due to shortage can be seen. Additionally, active Turkish buyers are providing support, instilling confidence among global suppliers to maintain firm offers.
Meanwhile, bulk shredded scrap offers were reported at $430-$435/t CFR from the US.
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