India: SteelMint's benchmark scrap index range bound amid muted end-user steel demand

SteelMint's scrap index has been range bound with slight fluctuations of +/- INR 200-300/t since last three days amid muted steel demand from end-user.

Today, the end-cutting index improved slightly by INR 100/tonne (t) to INR 45,600/t DAP Mandi Gobindgarh on 27 August, 2022.

Amid unclear outlook, buyers and sellers have opted for a wait and watch mode.

In Gujarat's Alang market, ship-breaking melting scrap prices remained stable today, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 44,700/t exy.

Market highlights-

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

Domestic and imported scrap price gap: In yesterday's trading session, imported HMS 1&2 (80:20) was traded at $460-470/t (INR 36,750-37,500) CNF Nhava Sheva and including freight, the cost comes to INR 38,700-39,500/t ex-works. Since domestic scrap is higher by INR 3,000-3,500/t, Mumbai-based mills and those in the nearby regions are prefering imported scrap.

Raipur sponge iron-billet spread: The current conversion spread (margins) from pellet-based DRI (P-DRI) to steel billet in Raipur stands at around INR 14,150/t.

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

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