India: SteelMint scrap index soars on improved trades as supply shortage persists

SteelMint's domestic steel scrap (end-cutting) index climbed INR 800/t to INR 45,500/tonne (t) DAP Mandi Gobindgarh on 27 June, 2022.

Meanwhile, LMS (light melting scrap) prices were at INR 40,000/t, HMS 80:20 at INR 42,700/t and CR busheling at INR 47,300/t.

Indian steel producers, mainly in the northern region, are facing challenges in sourcing scrap. Buyers raised their bids to secure adequate volumes following a marginal rise in semi-finished steel prices. In the first half today, ingot prices in Mandi were at INR 50,600/t, which later increased to close at INR 51,000-51200/t.

HR strip (patra) prices also increased by INR 1,200/t ($15/t) in Mandi Gobindgarh as well as in Raipur d-o-d on 27 June on improved demand amidst tight supplies. Current base grade patra (148-200mm, 2mm thick) prices are at INR 54,000/t ($689/t) exw-Mandi and INR 53,200/t ($679/t) exw-Raipur, excluding GST at 18%.

Shipbreaking melting scrap HMS (80:20) prices are assessed at INR 40,500/t exy.

Market highlights

• End-cutting and ingot spread: End-cutting scrap and ingot spread remained unchanged today at INR 6,000/t. The spread remains unchanged compared to last week.
  
  
• Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) in containers of West Africa origin was traded at $403/t CNF (INR 31,640/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 3,000-4,000/t.
  
  
• Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur decreased by INR 100-200/t d-o-d to INR 15,000/t.
  
  

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