On 5 April, 2024, the BigMint domestic steel scrap index (end-cutting) at Mandi Gobindgarh rose a significant INR 1,500/tonne (t) to INR 41,200/t DAP. Scrap prices continued to improved for the fifth straight day as shortage in the material persisted in the market.
Steel ingot prices increased by INR 1,500/t to INR 46,700/t DAP, as reported during the price normalization phase. In contrast, prices in various other markets witnessed an increase, ranging from INR 600/t to INR 1,500/t.
Mills are facing challenging times due to a shortage of scrap and escalating price hikes, leading many mills to do need-based procurement and reduce production. Despite moderate trade activity and slow ongoing demand since yesterday’s trading session, prices continued to rise. Many scrap suppliers are adopting a wait-and-watch approach, which is leading to a shortage of the raw material, a mill owner informed BigMint.
Another source said: “Price variations and past order cancellations are evident among scrap buyers and sellers in the Mandi market, coinciding with a w-o-w rise of about INR 3,900/t in scrap prices.”
Western India scrap market overview
In the Jalna market, located in western India, semi-finished steel prices surged by INR 900/t to INR 44,500/t, while finished steel prices saw an improvement of INR 600/t to INR 50,600/t. Additionally, HMS 80:20 prices climbed by INR 500/t to INR 33,800/t. Today’s trading session in the Jalna steel market witnessed active trade activities specifically in finished steel material. According to sources, “demand for finished steel is currently strong, with some mills even overbooking finished steel. The market is expected to remain steady for the next couple of days”.
Imported scrap market overview
The imported scrap market in India displayed a minor upturn due to a shortage of scrap in the domestic market. Market observers noted that imported scrap prices are approaching domestic levels, and if domestic prices continue to rise, buyers may increasingly opt for imported scrap. Indicative offers for shredded scrap from the US and Europe ranged between $415-$425/t CFR, while HMS (80:20) offers were at around $385-$395/t CFR.
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