On 21 February 2024, BigMint’s index for domestic steel scrap (end-cutting) in Mandi Gobindgarh, Punjab, fell by INR 200 per tonne (t), settling at INR 37,400/t on a delivered-at-plant (DAP) basis. The steel market in the region remained range-bound amid moderate trade activity.
Steel market
Steel ingot prices in Mandi fell by INR 150/t d-o-d settling at INR 42,800/t during the reporting and price normalisation period. Meanwhile, prices in various key markets exhibited a downturn ranging from INR 100/t-INR 300/t. In the region, rebar (Fe500) prices remained stable today at INR 47,300/t.
A mill owner said, “The finished steel sector saw moderate activity today, with the market appearing slower compared to the past 3-4 days. The majority of mills anticipate a range-bound price trend in the near term”.
“In Punjab, there were slight logistical issues today as two borders were closed due to ongoing farmer protests, but arrivals and dispatches continued smoothly on the other remaining routes,” a scrap supplier informed.
Raw materials prices
In Mandi, the price of sponge iron (CDRI) decreased by INR 200/t to INR 31,000/t today, while pig iron (steel grade) prices in Ludhiana remained stable at INR 39,500/t on a delivered-at-plant (DAP) basis.
Imported scrap market
Market activity in India has seen a slight uptick, albeit with limited deals involving small quantities from non-European sources. Importing scrap from Europe remains financially unviable for Indian buyers. Indicative prices for shredded scrap from Europe ranged between $415-$420/t CFR Nhava Sheva.
A representative from a trading company noted, “Ongoing distress sales in the market, with buyers seeking shredded scrap at approximately $395/t and HMS at around $375/t CFR. These materials are expected to remain available on the market for the next 7-10 days before potential adjustments.”
Overview of other market
Gujarat: BigMint’s assessment shows a decrease of INR 200/t in ship-breaking melting scrap prices in Gujarat’s Alang market on 21 February. HMS (80:20) rates are now at INR 34,000/t ex-yard. With limited trades observed in semi-finished and finished steel during the preceding trading session and minimal buying interest for scrap, suppliers have adjusted their prices downward today.
The Hyderabad steel market witnessed stagnation while there was some activity in billet trading yesterday attributed to a price increase of INR 500/t. However, despite higher quotes from sponge sellers, limited transactions were recorded. Billet prices remained steady at INR 41,500/t, while rebar (Fe500) prices stayed unchanged at INR 45,000/t today.
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: Imported melting scrap prices at Nhava Sheva Port were at around $389-$394/t, which equates to approximately INR 34,871/t (including freight), while local scrap-HMS (80:20) prices in Mumbai remained stable at INR 33,000/t d-o-d.
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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