India: SteelMint benchmark scrap index rises on higher bids amid supply shortage

SteelMint's domestic steel scrap (end-cutting) index rose INR 600/tonne (t) to INR 45,000/t DAP Mandi Gobindgarh on 24 June, 2022.

Light melting scrap (LMS) prices were assessed at INR 40,200/t, HMS 80:20 at INR 42,900/t and CR busheling scrap at INR 46,800/t.

Scrap availability in the market is tight as supplies from the nearby markets have been impacted ever since GST-checks by government officials commenced in a bid to eliminate unaccountable transactions.

Meanwhile, scrap buyers have raised their bids to secure adequate supplies backed by a marginal rise in semi-finished steel prices. Ingots prices in Mandi today rose by around INR 300/t d-o-d to INR 50,300/t.

However in Gujarat's Alang market shipbreaking melting scrap prices remained stable today, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 40,500/t exy.

Prices of ERW patra pipes (41-60 OD) increased by INR 900/t ($12/t) d-o-d in Mandi Gobindgarh and by INR 300/t ($4/t) in Raipur today. The current offers stand at INR 55,400/t in Mandi Gobindgarh and INR 53,300/t in Raipur.

Market highlights:

o End-cutting scrap and ingot spread: The spread between end-cutting scrap and ingots inched lower to INR 5,300-5,500/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 was 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 stood at around INR 16,200/t today.

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

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