India: SteelMint benchmark scrap index falls on sluggish finished steel sales

SteelMint's domestic steel scrap (end-cutting) index decreased by INR 600/tonne (t) to INR 46,300/t DAP Mandi Gobindgarh on 19 July, 2022.

LMS prices stood in the range of INR 41,000-41,300/t, HMS 80:20 at INR 44,000/t, and CR busheling scrap at INR 47,300/t.

In spite of low scrap availability in the domestic market, prices decreased as buyers/furnace owners adopted a wait-and-watch mode.

Furthermore, weak demand for finished steel products dragged down semi-finished steel prices, resulting in a sharp downward correction in scrap prices.

Market highlights-

• End-cutting and ingot spread: The end-cutting scrap and ingot spread remained unchanged today at INR 5,700-6,000/t.
  
  
• Domestic and imported scrap price gap: In Mumbai, melting scrap imported from West Africa (HMS 80:20) was traded yesterday at $455/t while Dubai- and Europe-origin scrap were sold at $448/t and $470/t, respectively. Mumbai-based mills and those in the nearby regions are preferring to import scrap because domestic material is costlier by about INR 4,000/t.
  
  
• Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands stable at around INR 14,500/t.
  
  

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