India: SteelMint benchmark scrap index rises on improved steel demand

SteelMint's domestic steel scrap (end-cutting) index increased by INR 300/t to INR 43,100/tonne (t) DAP Mandi Gobindgarh on 16 June 2022.

Meanwhile, prices of HMS 80:20 are at INR 41,000/t, and CR busheling at INR 44,900/t.

The scrap availability in the market is still tight mainly in the northen region. Buyers raised their bids to secure adequate volumes backed by a marginal increase in semi-finished steel prices. In the first half of the day, ingot prices in Mandi were at INR 49,000/t, but later prices corrected and closed at INR 48,600/t.

Prices for ERW patra pipes (41-60 OD) increased by INR 1,000/t ($13/t) d-o-d in Mandi Gobindgarh and by INR 600/t ($8/t) in Raipur on 16 June 2022. The current offers stand at INR 53,500/t in Mandi Gobindgarh, and INR 51,600/t in Raipur.

Shipbreaking melting scrap prices in Gujarat's Alang market also increased by INR 500/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 40,200/t ex-yard.

Market highlights-

• End-cutting and ingot spread: The spread between end-cutting scrap and ingots remained stable at INR 6,000/t today. Last week, the spread was at around INR 6,200/t.
  
  
• Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) of Dubai-origin was traded at $450/t CNF (INR 35,150/t) Nhava Sheva. Mumbai-based mills preferred imported scrap because domestic material is costlier by around INR 800-1,000/t.
  
  
• Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur increased by INR 100-200/t d-o-d to INR 15,100-15,200/t. This increase was due to limited availability of steel billets in the Raipur market.
  
  

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