India: SteelMint scrap index edges down tracking drop in semis prices

SteelMint's domestic steel scrap (end-cutting) index fell by INR 600/t to INR 43,700/tonne (t) DAP Mandi Gobindgarh on 18 June 2022.

Meanwhile, LMS (light melting scrap) prices are assessed at INR 38,900/t, HMS 80:20 at INR 41,600/t, and CR busheling at INR 45,500/t.

Ingots prices in Mandi witnessed a downward correction of INR 600/t to INR 49,300/t d-o-d (till the time of publishing this insight).

Scrap prices dropped as the market turned bearish due to weak buying interest from end-users of finished steel products.

Shipbreaking melting scrap prices increased by INR 300/t d-o-d in Gujarat's Alang, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 40,800/t exy.

Market highlights-

o 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.

o Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) of Dubai-origin was traded at $445/t CNF (INR 34,700/t) Nhava Sheva.

o Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stood at around INR 15,000/t.

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