On 10 April, 2024, BigMint’s domestic scrap (end-cutting) index held firm at INR 40,000/t DAP Mandi Gobindgarh. Scrap procurement encountered obstacles due to a shortage of scrap and discrepancies between buyers and sellers. Additionally liquidity issue persisted in the market.
A mill owner commented: “We think Mandi ingot prices won’t decrease from current level as there’s a shortage of scrap in the market. Although plants are offering lower prices for scrap, sellers aren’t willing to sell at those prices.”
Raw material price update
In Mandi, prices of sponge iron (CDRI) fell by INR 100/t to INR 33,000/t, while in Ludhiana, pig iron (steel grade) prices fell by INR 200/t to INR 40,800/t on a delivered-at-plant (DAP) basis.
Semis’ market trend
Steel ingot prices in Mandi held steady at INR 45,600/t d-o-d during reporting and price normalisation phase. Conversely, prices in other significant markets experienced a decline ranging from INR 50/t to INR 300/t today. Decent buying activity was observed in the semi-finished steel market, particularly in the second half of the trading session, indicating some spot demand.
Finished steel market
Rebar (Fe500) prices experienced a decline of INR 400/t, reaching INR 50,300/t, amid subdued trading activity noted in the finished steel market. Prices in the finished steel market dropped across major key markets, with a decline of around INR 100/t to INR 500/t observed today.
About imported market
Today, India’s appetite for imported scrap remained sluggish, with indicative and offer levels in the market remaining consistent. For instance, shredded scrap offers from Europe hovered between $422-428/t CFR, while HMS (80:20) offers ranged from $388-398/t CFR, originating from West Africa and Europe.
Market participants noted that amidst the current uncertainty surrounding domestic scrap prices, and rising imported scrap prices buyers are adopting a cautious approach, opting to wait and observe before investing their capital to ensure better profitability, especially given the fluctuating demand in the steel industry.
Alang market
Ship-breaking melting scrap prices in Alang, Gujarat, remained unchanged d-o-d on 10 April, 2024. According to BigMint’s assessment, HMS (80:20) prices were at INR 34,700/t ($417/t) ex-yard. Semi-finished steel prices held steady in the region during yesterday’s trading session, and moderate buying inquiries for scrap at current price levels encouraged scrap suppliers to maintain firm offers today.
To see BigMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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