BigMint’s domestic steel scrap index in Mandi Gobindgarh recorded a decrease in prices for domestic end-cutting scrap. Prices declined by INR 100/t, reaching INR 37,300/t delivered at the plant. Prices for all grades of scrap in the region witnessed a minor decrease today, which can be attributed to subdued purchasing activity from mills.
Today, prices of steel ingots dropped by INR 100/t to INR 42,800/t during reporting and price normalisation. Similarly, prices in several significant markets witnessed a decrease, ranging from INR 100/t to INR 200/t.
Rebar (Fe500) prices remained unchanged today, with moderate trading activity observed, settling at INR 47,400/t exw.
Market sentiments
Today, scrap purchasing from mills was sluggish due to the financial year-end, with many mills prioritising the closure of their March financial accounts and settlements. Similarly, scrap suppliers were occupied with settling their credits with mills. Overall, the market was busy with these engagements, resulting in slower buying and selling activities. Furthermore, there were active GST raids conducted in the region, and border check post teams were also on alert.
Southern steel market
In the Chennai market, situated in South India, semi-finished steel prices rose marginally by INR 200/t to INR 43,500/t, while prices for finished steel and HMS 80:20 remained steady, assessed at INR 47,500/t and INR 32,600/t, respectively. Demand for finished steel was moderate in today’s trading session. According to market sources, steel mills are only producing 50-60% of finished steel due to subdued demand, while liquidity issues persist, slowing down trade activities in the finished steel sector.
Imported scrap market
Indian buyers are showing reluctance in future scrap bookings, citing slow finished steel sales and limited requirements from mills. Prices for bulk shredded scrap from the US ranged from $410-$415/t, while HMS (80:20) was offered at $ 395-400/t, influenced by recent hikes in Turkish bulk HMS prices. Over the past three months, Indian buyers have only booked 2-3 bulk vessels, indicating subdued demand.
Offers for shredded scrap in containers stand at $416-$420/t levels, with bid interaction at $400-405/t for Europe origin materials. HMS from EU to West Coast India is priced at $385-$390/t, while materials from West Africa are slightly cheaper by $10/t, factoring in freight charges and quality assurance.
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