- Steel prices continue to decline in Mandi
- Chennai scrap prices rise by INR 500/t
BigMint’s domestic end-cutting scrap index in the Mandi Gobindgarh market declined by INR 100/tonne (t) to INR 40,900/t DAP on 23 April, 2024. Weak market sentiments and soft trade activity persisted in the major market. The most significant price decline was observed in Mandi’s light melting scrap grade, decreasing by INR 600/t w-o-w.
“Buyers refrained from making big volume deals as they anticipate further drops in semis and finished steel prices. Meanwhile, finished mills are offering discounts in the downturn market to attract buyers,” a mill owner told BigMint.
Punjab: Prices of alternative raw materials like sponge iron (CDRI) remained stable at INR 34,800/t, while pig iron (steel grade) prices fell by INR 200/t to INR 42,000/t DAP.
Steel market
Steel ingot prices in Mandi fell by INR 100/t to INR 46,600/t during the price reporting and normalisation phase. On the other hand, prices in other major markets witnessed a decline of INR 100/t-700/t. The highest decrease was observed in Ludhiana, with prices dropping by around 700/t d-o-d.
Rebar (Fe500) prices dropped by INR 400/t to INR 51,400/t exw, with slow trade activity.
Overview of other market
In the Chennai market, located in South India, semi-finished and finished steel prices have remained stable, assessed at INR 46,500/t and INR 50,500/t, respectively. Meanwhile, HMS 80:20 prices rose by INR 500/t to INR 34,100/t. As semi-finished and finished steel prices increased in the previous week, scrap prices did not show as much improvement compared to the finished steel. Consequently, suppliers held the supply of scrap at lower prices, forcing buyers to increase their scrap purchase prices.
Imported scrap market
In India, the demand for imported scrap has surged due to a temporary scarcity in the market caused by local suppliers, coupled with the anticipation of increased demand for finished steel ahead of elections. Rough estimates indicated that shredded scrap from the US and Europe was being offered at approximately $425-$430/t CFR, while HMS (80:20) offers from West Africa and Europe were assessed at $400-$405/t CFR.
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