India: SteelMint scrap index rises INR 700/t on recovery in demand for semis

SteelMint's domestic steel scrap (end-cutting) index increased by INR 700/tonne (t) to INR 43,700/t DAP Mandi Gobindgarh on 22 June, 2022.

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

Steel ingots prices in Mandi Gobindgarh increased by INR 800/t to INR 49,500/t d-o-d (till the time of publishing this index).

The key factor supporting the hike in scrap prices was improved demand for semi-finished steel and limited availability of scrap material.

Prices of ERW patra pipes (41-60 OD) increased by INR 900/t ($11/t) d-o-d in Mandi Gobindgarh and by INR 600/t ($8/t) in Raipur today. The current offers stand at INR 54,000/t in Mandi Gobindgarh and INR 52,500/t in Raipur.

Shipbreaking melting scrap prices increased by INR 600/t d-o-d in Gujarat's Alang today, as per SteelMint's assessment. HMS (80:20) prices are assessed at INR 40,200/t exy.

Market highlights

o End-cutting scrap and ingot spread: The spread between end-cutting scrap and ingot lowered to INR 5,200-5,500/t today 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 31,200/t) Nhava Sheva, a fall of $45/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 15,500/t today.

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

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