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

SteelMint's domestic steel scrap (end-cutting) index climbed INR 700/t to INR 45,700/tonne (t) DAP Mandi Gobindgarh on 1 July, 2022.

Light melting scrap (LMS) prices were at INR 40,000/t, HMS 80:20 at INR 42,500/t and CR busheling at INR 47,800/t.

Steel ingots prices in Mandi Gobindgarh increased by INR 600/t to INR 51,500/t d-o-d (till the time of publishing this index).

The key factor supporting the hike in scrap prices was moderate improvement in demand for semi-finished steel.

Market highlights

End-cutting and ingot spread: The end-cutting scrap and ingot spread remained unchanged today at INR 5,500-5,700/t.

Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) in containers of Dubai origin was traded at $430/t CNF (INR 33,950/t) Nhava Sheva. Mills in Mumbai and those in the nearby regions are preferring to import scrap because domestic material is costlier by around INR 4,000-4,800/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 16,400-500/t.

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

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