BigMint’s domestic end-cutting scrap index in the Mandi Gobindgarh steel market increased by INR 600/tonne (t) to INR 41,800/t DAP on 17 April. Today, the scrap index increased to its peak in the last seven months, marking a notable uptick in prices. The last time it reached such levels was observed on 16 September, 2023.
In the Mandi steel market today, there was a moderate level of activity, yet scrap buyers found themselves hesitant to make substantial volume bookings due to the volatile pricing landscape. Sudden price increases are causing discrepancies between buyers and sellers, adding to the confusion in the market.
The price of alternative raw materials like sponge iron (CDRI) rose by INR 100/t to INR 34,700/t, while pig iron (steel grade) prices in Ludhiana climbed by INR 500/t to INR 42,500/t DAP.
Steel market
Steel ingot prices in the Mandi increased by INR 500/t to INR 47,500/t, touches 7-months high. On the other hand, prices in other major markets witnessed a uptick, ranging from INR 400-INR 800/t today. During the latter half of the trading session, the market is supported by consistent average demand in spot transactions.
Today, rebar prices increased by INR 100/t to INR 51,800/t ex-works, amid moderate activity.
Imported scrap scenario
In India, demand for imported scrap stayed low because buyers lacked confidence amid fluctuating offers and domestic market volatility. Shredded scrap from the US and Europe was priced around $420-$430/t CFR, while HMS (80:20) offers from West Africa and Europe hovered at $390-$400/t CFR.
Notably, a primary steel mill has reportedly booked around 4,500 t of shredded scrap from Australia at $420/t CFR Vizag and around 3,000 t of shredded scrap from New Zealand at $415/t CFR Mundra in the previous week.
Additionally, offers for US-origin bulk shredded scrap were heard at around $415/t CFR levels.
Chennai steel market
In the Chennai market, situated in South India, semi-finished and finished steel prices have remained stable, assessed at INR 46,000/t and INR 50,200/t, respectively. Meanwhile, HMS 80:20 prices edged up by INR 100/t to INR 33,600/t. Trade activities in finished steel were at a moderate level in today’s trading session, while scrap availability remained good in the market. According to market sources, “Mill owners have begun to procure imported scrap, as offer prices for imported scrap and domestic scrap are nearly equivalent.”
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