The Mandi Gobindgarh steel market witnessed a decline in domestic end-cutting scrap prices on 26 February’2024, as reported by BigMint. Prices dropped by INR 100 per tonne, settling at INR 37,700 per tonne delivered at plant. This comes amidst a moderate market in semi-finished and finished steel in the region today, although mills maintained their scrap procurement levels.
Steel ingot prices in the region fell by INR 100/t to INR 43,000/t. The steel market is showing mixed signals. Ingot prices in Mandi and other major markets saw losses today, with declines up to INR 50 to INR 200 tonne. Rebar prices buck the trend, rising INR 200/tonne to reach INR 47,700/tonne. While demand for rebar has been slightly improved recently, buyers are showing interest in yesterday’s lower pricing.
Raw material price update
In Mandi, the price of sponge iron (CDRI) declined by INR 100/t to INR 31,100/t today, while pig iron (steel grade) prices in Ludhiana fell by INR 200/t, and settled at INR 39,300 per tonne on a delivered-at-plant (DAP) basis.
Overview of other markets
For the third day running on 26 February, 2024, ship-breaking melting scrap prices in Alang, Gujarat, showed no change. BigMint’s evaluation indicates that HMS (80:20) prices remained steady at INR 33,700 per ton ex-yard. In the recent trading session, there were moderate inquiries for purchasing semi-finished and finished steel in the region, leading scrap suppliers to uphold their stable pricing today.
In the Chennai market, situated in South India, semi-finished steel prices increased by INR 200/t, reaching INR 43,500/t, while rebar prices remained unchanged at INR 47,500/t. Conversely, HMS 80:20 witnessed a decline of INR 200/t to INR 31,700/t. The market is experiencing limited demand for both semi-finished and finished steel products. According to reliable sources, due to the constrained demand in finished steel, some mill owners are offering rebar at INR 46,000/t for various projects, while the good arrival of domestic scrap in the mills.
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 $385-$390/t, which equates to approximately INR 34,523/t (including freight), while local scrap-HMS (80:20) prices in Mumbai stable at INR 33,500/t d-o-d.
Indian buyers are beginning to show a modest interest in imported scrap and are now seeking to secure bookings for late April and May shipments, anticipating inventory depletion by March, according to market participants. Notably, buyers are favouring non-European cargoes due to significant price disparities. Indicative offers for shredded scrap from Europe ranged from $410-$420/t CFR Nhava Sheva.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at INR 13,250/t.
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