India: SteelMint's benchmark scrap index drops as supplies ease

SteelMint's domestic steel scrap (end-cutting) index fell by INR 400/tonne (t) to INR 45,000/t DAP Mandi Gobindgarh on 30 June, 2022.

Meanwhile, the main impact was seen in LMS (light melting scrap) and HMS (80:20) throughout the day; buyers booked at the rate that the Mandi Association had fixed in its morning message sent to market participants. Usually, scrap is booked at a rate INR 500-1,000/t higher than the prices set by the Association.

LMS (light melting scrap) was assessed at INR 39,300/t, HMS 80:20 at INR 41,800/t and CR busheling at INR 47,100/t DAP.

Overall, ingots prices in Mandi remained stable today, with a hint of a correction seen but still closing at the same level as yesterday at INR 50,800/t DAP.

Mandi producers are running their factories for about 10-12 hours per day because of scrap shortage; but as scrap availability improves in the market, production is expected to increase in the near future.

A market source informed that the main reason for increased scrap availability in Mandi is the increase in imported scrap supply.

Market highlights-

• End-cutting and ingot spread: The spread between end-cutting scrap and ingots lowered to INR 5,700-5,900/t today from INR 6,000/t last week.
  
  
• 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 16,300/t down INR 100/t.
  
  

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