India: SteelMint benchmark scrap index falls tracking decline in semis prices

SteelMint's domestic steel scrap (end-cutting) index has fallen by INR 300/t to INR 44,700/tonne (t) DAP Mandi Gobindgarh on 25 June 2022.

Light melting scrap (LMS) prices are assessed at INR 39,900/t, HMS 80:20 at INR 42,600/t and CR busheling scrap at INR 46,500/t.

Ingots prices in Mandi witnessed a downward correction of INR 300/t to INR 50,200/t d-o-d.

Domestic scrap prices in Mandi Gobindgarh, Punjab, remained under pressure because of slow ingots sales. However scrap supply is still weak in the market. Steel producers are making need-based purchases to meet their immediate requirements.

An auction for around 2,000 t of steel grade pig iron by SAIL-DSP was held yesterday. The entire quantity was booked at INR 44,225/t ex-works. Bid price increased by around INR 1,100/t as compared to the previous auction held of 8 June.

Meanwhile shipbreaking melting scrap prices have decreased by INR 500/t d-o-d in Gujarat's Alang market, SteelMint assessment shows. HMS (80:20) prices are assessed at INR 40,000/t ex-yard.

Market highlights-

o End-cutting scrap and ingot spread: The spread between end-cutting scrap and ingots lowered to INR 5,500-5,600/t from INR 6,000/t last week.

o Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) of Dubai-origin is being traded at $400/t CNF (INR 31,300/t) Nhava Sheva, a fall of $51/t from last week.

o Raipur sponge iron-billet spread: The conversion spread (margin) from pellet-based DRI (P-DRI) to billets in Raipur stands at around INR 16,150/t today.

To see SteelMint's Melting Scrap Assessment, pricing methodology and specification documents, Click Here

To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - info@steelmint.com.