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

SteelMint's domestic steel scrap (end-cutting) index rose INR 400/tonne (t) to INR 47,500/t DAP Mandi Gobindgarh on 9 August, 2022.

Light melting scrap (LMS) prices were assessed at INR 42,500/t, HMS 80:20 at INR 45,100/t and CR busheling scrap at INR 48,900/t.

As scrap procurement inquiries began to trickle in, sellers held on to their goods in anticipation of a higher price in the near term. GST checking is also taking place to prevent unaccountable transactions.

However, furnace owners raised their bids to ensure a steady supply of materials to continue operations.

Market highlights-

End-cutting and ingot spread: The end-cutting scrap and ingot spread remained unchanged today at INR 5,800-6,000/t.

Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were around $450-475/t, while local scrap - HMS(80:20) - in Mumbai was assessed at INR 42,000/t FOR. Scrap imports are preferred by the Mumbai-based mills and those in the nearby regions because domestic scrap prices are higher by about INR 2,000-2,500/t.

Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,700/t.

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