India: SteelMint steel scrap index rises INR 500/t amid supply crunch

SteelMint's domestic steel scrap (end-cutting) index moved higher by INR 500/tonne (t) to INR 46,000/t DAP Mandi Gobindgarh on 28 June, 2022.

Light melting scrap (LMS) prices were assessed at INR 40,500/t, HMS 80:20 at INR 43,200/t and CR busheling scrap at INR 47,800/t.

Scrap buyers raised their bids to secure adequate quantities backed by a marginal rise in semi-finished steel prices. Ingots prices in the Mandi market today rose INR 500/t to INR 51,500/t DAP.

An auction for around 1,600 t of basic pig iron by SAIL-RSP was held yesterday in which buyers booked only 50 t out of the total material at the base price of INR 45,800/t exw.

Meanwhile, shipbreaking melting scrap prices in Gujarat's Alang declined by INR 400/t d-o-d, except for a few sizes of rolling plates. HMS (80:20) prices are assessed at INR 40,100/t exy.

Market highlights:

o End-cutting scrap and ingot spread: The spread between end-cutting scrap and ingots was asessed at INR 5,400-5,600/t - more or less stable compared to last week.

o Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) in containers of West Africa origin was traded at $415/t CNF (INR 32,800/t) Nhava Sheva, up $12/t d-o-d.

o Raipur sponge iron-billet spread: The conversion spread (margin) from pellet-based DRI (P-DRI) to billets in Raipur stands at around INR 16,700/t today.

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